Here is information related to Carla Vista Co. for 2022.

Total credit sales		$1,575,000
Accounts receivable at December 31		787,500
Bad debts written off		36,800

(a) What amount of bad debt expense will Carla Vista Co. report if it uses the direct write-off method of accounting for bad debts?

Bad debts expense

$enter the bad debts expense in dollars assuming option a

(b) Assume that Carla Vista Co. uses the percentage-of-receivables basis to record bad debt expense and concludes that 4% of accounts receivable will become uncollectible. What amount of bad debt expense will the company record if Allowance for Doubtful Accounts has a credit balance of $3,300?

Bad debts expense

$enter the bad debts expense in dollars assuming option b

(c) Assume the same facts as in (b), except that there is a $900 debit balance in Allowance for Doubtful Accounts. What amount of bad debt expense will Carla Vista record?

Bad debts expense

$enter the bad debts expense in dollars assuming option c

Answer rating: 100% (QA)

Bad debts expense 36800 Bad deb... View the full answer