At the end of the current year, the unadjusted trial balance of Branco, Inc., indicated $5,837,000 in Accounts Receivable, a credit balance of $10,100 in Allowance for Doubtful Accounts, and Sales Revenue (all on credit) of $160,380,000. Based on the knowledge that the current economy is in distress, Branco increased its bad debt rate estimate to 0.3 percent of credit sales.

Required: 

1. What amount of bad debt expense should be recorded for the current year? 

2. What amount will be reported on the current year's balance sheet for accounts receivable?

Answer rating: 100% (QA)

1 bad debt expense credit sales 03 1... View the full answer