ABC Company begins a new accounting period each month. ABC Company began operations January 1, Year 1.
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Question:
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?
Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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