Question: Problem 8-4A Here is information related to Nash's Trading Post, LLC for 2017. Total credit sales Accounts receivable at December 31 Bad debts written off
Problem 8-4A Here is information related to Nash's Trading Post, LLC for 2017. Total credit sales Accounts receivable at December 31 Bad debts written off $1,532,000 766,000 34,100 (a) What amount of bad debt expense will Nash's Trading Post, LLC report if it uses the direct write-off method of accounting for bad debts? Bad debts expense (b) Assume that Nash's Trading Post, LLC decides to estimate its bad debt expense based on 4% of accounts receivable, what amour of bad debt expense will the company record if Allowance for Doubtful Accounts has a credit balance of $3,300? Bad debts expense (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 Nash's Trading Post, LLC record? Bad debts expense
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