Aerospace Electronics reports $570,000 in credit sales for 2018 and $634,500 in 2019. They have a $501,000 accounts receivable balance at the end of 2018, and $602,000 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 4% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 6% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. $1 C. How does the new total bad debt expense affect net income and net accounts receivable? Bad debt expense is lower, net income is higher, and net re а. are higher. Bad debt expense is lower, net income is higher, and net re b. are lower. Bad debt expense is higher, net income is lower, and net re с. are higher. Bad debt expense is higher, net income is lower, and net re d. are lower.

Aerospace Electronics reports $570,000 in credit sales for 2018 and $634,500 in 2019. They have a $501,000 accounts receivable balance at the end of 2018, and $602,000 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 4% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 6% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. $1 C. How does the new total bad debt expense affect net income and net accounts receivable? Bad debt expense is lower, net income is higher, and net re а. are higher. Bad debt expense is lower, net income is higher, and net re b. are lower. Bad debt expense is higher, net income is lower, and net re с. are higher. Bad debt expense is higher, net income is lower, and net re d. are lower.

Name: Aerospace Electronics reports $570,000 in credit sales for2018 and $6
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Description: Aerospace Electronics reports $570,000 in credit sales for2018 and $634,500 in 2019. They have a $501,000accounts receivable balance at the end of 2018, and$602,000 at the end of 2019. Aerospace uses the incomestatement method to record bad debt est

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 12EA: Aerospace Electronics reports $567,000 in credit sales for 2018 and $632,500 in 2019. They have a...

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