Bad Debt Expense: Percentage of Credit Sales Method Bradford Plumbing had the following data for a recent year: Credit sales Allowance for doubtful accounts, 1/1 (a credit balance) Accounts receivable, 1/1 Collections on account receivable Accounts receivable written off Bradford estimates that 2.7% of credit sales will eventually default. Required: 1. Compute bad debt expense for the year (rounding to the nearest whole number). $ 114,793 X 2. Determine the ending balances in accounts receivable and allowance for doubtful accounts. Accounts receivable Allowance for doubtful accounts $ $547,900 8,740 42,340 489,770 14,250 Ending Balance 86,220 9,283
Bad Debt Expense: Percentage of Credit Sales Method Bradford Plumbing had the following data for a recent year: Credit sales Allowance for doubtful accounts, 1/1 (a credit balance) Accounts receivable, 1/1 Collections on account receivable Accounts receivable written off Bradford estimates that 2.7% of credit sales will eventually default. Required: 1. Compute bad debt expense for the year (rounding to the nearest whole number). $ 114,793 X 2. Determine the ending balances in accounts receivable and allowance for doubtful accounts. Accounts receivable Allowance for doubtful accounts $ $547,900 8,740 42,340 489,770 14,250 Ending Balance 86,220 9,283
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Bad Debt Expense: Percentage of Credit Sales Method
Bradford Plumbing had the following data for a recent year:
Credit sales
Allowance for doubtful accounts, 1/1 (a credit balance)
Accounts receivable, 1/1
Collections on account receivable
Accounts receivable written off
Bradford estimates that 2.7% of credit sales will eventually default.
Required:
1. Compute bad debt expense for the year (rounding to the nearest whole number).
$
114,793 X
2. Determine the ending balances in accounts receivable and allowance for doubtful accounts.
Accounts receivable
Allowance for doubtful accounts
$
$547,900
8,740
42,340
489,770
14,250
Ending Balance
86,220
9,283
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