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 2.5% of credit sales will eventually default. Required: 1. Compute bad debt expense for the year (rounding to the nearest whole number). 2. Determine the ending balances in accounts receivable and allowance for doubtful accounts. Ending Balance 86,220 ✔ Accounts receivable Allowance for doubtful accounts Feedback $547,900 8,740 42,340 489,770 14,250 X Check My Work 1. and 2. The percentage of credit sales method attempts to estimate the ending balance in R sanca bu forming estimates
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 2.5% of credit sales will eventually default. Required: 1. Compute bad debt expense for the year (rounding to the nearest whole number). 2. Determine the ending balances in accounts receivable and allowance for doubtful accounts. Ending Balance 86,220 ✔ Accounts receivable Allowance for doubtful accounts Feedback $547,900 8,740 42,340 489,770 14,250 X Check My Work 1. and 2. The percentage of credit sales method attempts to estimate the ending balance in R sanca bu forming estimates
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 2.5% of credit sales will eventually default.
Required:
1. Compute bad debt expense for the year (rounding to the nearest whole number).
2. Determine the ending balances in accounts receivable and allowance for doubtful accounts.
Ending Balance
86,220 ✔
Accounts receivable
Allowance for doubtful accounts
Feedback
$547,900
8,740
42,340
489,770
14,250
X
Check My Work
1. and 2. The percentage of credit sales method attempts to estimate the ending balance in R
sonce bu formino estimate
edece
CO
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