Zed Corporation used the credit sales method to estimate bad debt expense. In $2022,$ credit sales totaled $$2,610,000$ for the year. The ending balance of A$/$R in $2023$ is $$382,500($which is already adjusted for $$28,200$ written off during the year after it was deemed uncollectible$).$ The opening balance of the allowance for doubtful accounts in $2023$ was $$40,800.$ Over time, $0\mathrm{.}75\%$ of credit sales have been uncollectible.

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To calculate the bad debt expense using the credit sales method we can follow these steps St... View the full answer