Compute bad debt expense based on the following information:

a. LRP Company estimates that 3% of net credit sales will become uncollectible. Sales revenue are $600,000, sales returns and allowances are $30,000, and the allowance for doubtful accounts has a $5,000 credit balance.

b. LRP Company estimates that 10% of accounts receivable will become uncollectible. Accounts receivable are $160,000 at the end of the year, and the allowance for doubtful accounts has a $400 debit balance

Answer rating: 100% (QA)

a Net Credit sales 600000 X Percentage uncollec... View the full answer