Extreme Sport, Inc., uses the allowance method to account for bad debts. During 2010, the company recorded $750,000 in credit sales. At the end of 2010 before adjustments, account balances were accounts receivable, $190,000, and allowance for uncollectible accounts, $(1,000). If bad debts expense is estimated to be 2% of credit sales, how much bad debts expense will be on the year-end income statement?
Answer to relevant QuestionsAt the beginning of 2009, Runnels’ Art Supply had the following account balances: accounts receivable, $285,000, and allowance for uncollectible accounts, $(8,250). During the year, net credit sales were $946,750, cash ...Using the data from E4-39B, calculate the accounts receivable turnover ratio for 2009. On average, how many days does it take Runnels’ Art Supply to collect its accounts receivable?In E4-39B, At the beginning of 2009, ...Storkville Baby Boutique had the following transactions during the first half of 2011:January 2 Sold merchandise on account to Tiny Tots Toys, $24,000. The cost of the merchandise sold was $18,000.February 3 Accepted a ...Baby Trails Toys had the following transactions during the first half of 2009:January 2 Sold merchandise on account to Thumbelina & Company, $14,000. The cost of the merchandise sold was $8,000.February 3 Accepted a 90-day ...Again, refer to the balance sheet to answer the following questions:1. Compute the accounts receivable turnover ratio for the two most recent years. Net accounts receivable at the end of 2006 was $2,709 million. You’ll ...
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