A company made a sale on account to Tanya Thompson for 5000 and to John Brown for 4000. The company received 3000 from Ms. Thompson and 3000 from Mr. Brown, but does not expect to collect the balance from either customer. Using the direct writeoff method, what is the amount of bad debts expense?
A company made a sale on account to Tanya Thompson for 5000 and to John Brown for 4000. The company received 3000 from Ms. Thompson and 3000 from Mr. Brown, but does not expect to collect the balance from either customer. Using the direct writeoff method, what is the amount of bad debts expense?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company made a sale on account to Tanya Thompson for 5000 and to John Brown for 4000. The company received 3000 from Ms. Thompson and 3000 from Mr. Brown, but does not expect to collect the balance from either customer. Using the direct writeoff method, what is the amount of bad debts expense?
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