Question

A company uses the percentage-of-sales approach to estimate bad debts. Sales for the year were $750,000, and gross profit was $450,000. The company estimates that 5% of sales are uncollectible.
Required
What is the company's estimated bad debt expense for the year? Would your answer change if the company was able to increase its gross profit from its sales?


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  • CreatedJuly 16, 2015
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