Answered: Ava Company sets bad debt expense at 2… | bartleby

FINANCIAL ACCOUNTING

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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QUESTION 4
Ava Company sets bad debt expense at 2 percent of its sales. Ava reported total sales of $ 60,481. Before the adjustment, Ava
had $731 credit balance in its allowance for doubtful accounts.
How much bad debt expense did Ava report on its income statement?

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