A company's accounts receivable is audited and the following information is obtained:

• Beginning balance of accounts receivable: $500,000
• Ending balance of accounts receivable: $400,000
• Sales made during the year: $2,000,000
• Cash received from customers during the year: $1,800,000

Calculate the following:

a) Total amount of bad debt expense for the year

b) Net sales for the year

c) Accounts receivable turnover ratio

Show all calculations and express the answer to the nearest dollar or ratio as applicable.

Answer rating: 100% (QA)

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