The records of Ship Co. show the following information: Accounts receivable, Jan. 1 Allowance for bad...

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The records of Ship Co. show the following information: Accounts receivable, Jan. 1 Allowance for bad debts, Jan. 1 (Cr.) Sales on account Sales returns on credit sales Write-offs Recoveries Collections, excluding recoveries 180,000 12,600 900,000 a. Percentage of net credit sales (2%) b. Percentage of ending receivable (8%) 90,000 15,800 2,600 781,000 Requirements: Compute for the (1) bad debts expense, (2) ending balance of allowance for bad debts, and (3) carrying amount of accounts receivable on Dec. 31 under each of the following scenarios: The records of Ship Co. show the following information: Accounts receivable, Jan. 1 Allowance for bad debts, Jan. 1 (Cr.) Sales on account Sales returns on credit sales Write-offs Recoveries Collections, excluding recoveries 180,000 12,600 900,000 a. Percentage of net credit sales (2%) b. Percentage of ending receivable (8%) 90,000 15,800 2,600 781,000 Requirements: Compute for the (1) bad debts expense, (2) ending balance of allowance for bad debts, and (3) carrying amount of accounts receivable on Dec. 31 under each of the following scenarios:

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