Question: The following data were selected from Chows ledger. Chows accounting policy related to estimated bad debt expense is to keep the same relation between the

The following data were selected from Chow€™s ledger. Chow€™s accounting policy related to estimated bad debt expense is to keep the same relation between the Accounts Receivable and Allowance for Doubtful Accounts.

Requirements
1. Calculate the missing information.
2. What is the percentage used to estimate the bad debts?
3. Explain the transactions (1) to (4).

Accounts Receivable Sales Allowance for Doubtful Accounts 3,360 4,680 42,000 (2) (1) 252,000 (1) 252,000 (3) 226,800 58,500

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