bad debt Q Brunner Company had the following balances on January 1, 2020: Accounts Receivable $120,000 Allowance for doubtful Accounts -14,000 During the current year the company recorded the following transactions: Trans. 1 Sales on credit for the year $220,000. Trans. 2 Customers returned $8,000 of merchandise for credit. Trans. 3 Collections from customers $180,000. Trans. 4 Write-off during the year $16,000. Trans. 5 Collected $4,000 of previously written - off accounts. Bruner estimates its AFDA balance at year-end at 15% of Accounts Receivable balance. c) What is the amount that will be reported as Bad Debt Expense for this year? $18400 *how did they get this answer pls explain I dont understand how to calculate bad debt.
bad debt Q Brunner Company had the following balances on January 1, 2020: Accounts Receivable $120,000 Allowance for doubtful Accounts -14,000 During the current year the company recorded the following transactions: Trans. 1 Sales on credit for the year $220,000. Trans. 2 Customers returned $8,000 of merchandise for credit. Trans. 3 Collections from customers $180,000. Trans. 4 Write-off during the year $16,000. Trans. 5 Collected $4,000 of previously written - off accounts. Bruner estimates its AFDA balance at year-end at 15% of Accounts Receivable balance. c) What is the amount that will be reported as Bad Debt Expense for this year? $18400 *how did they get this answer pls explain I dont understand how to calculate bad debt.
Chapter1: Financial Statements And Business Decisions
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