Calculate bad debt expense based on the following information: (a) Alpha Company estimates that 3% of net
Question:
Calculate bad debt expense based on the following information: (a) Alpha Company estimates that 3% of net credit sales will become bad debt. Credit sales are $300,000, sales returns and provisions are $15,000, and the allowance for doubtful/uncollectible accounts has a credit balance of $1,000.
(b) Alpha Company estimates that 2% of the accounts receivable will become uncollectible. Accounts receivable is $70,000 at the end of the year, and the allowance for doubtful/uncollectible accounts has a credit balance of $1,000.
Which are the:
Bad debt expense for question (a)
Bad debt expense for question (b)
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood