ABC Company begins a new accounting period each month.

ABC Company began operations January 1, Year 1. In January, ABC Company had $10,000 cash sales, $15,000 sales on account and collected $3,000 on account.

During February, ABC Company had $25,000 cash sales, $32,000 sales on account and collected $21,000 on the account.

ABC Company estimates delinquent accounts using the Percent of the Revenue method. ABC Company estimates Bad Debt Expenses to be 10%.

What is February ending balance for bad debts allowance?

Answer rating: 100% (QA)

To calculate the February ending balance for bad debts allowance we need to first calculate the ... View the full answer