Creek Company uses the percentage of credit sales method in determining its bad debt expense. The following information comes from the accounting records of Creek Company: $ 290,000 Cash sales Credit sales Total sales 710,000 1,000,000 8,000 Credit balance in the Allowance for Doubtful Accounts Bad debt loss rate 3% What is the estimated bad debt expense? Multiple Choice $30,000 $22.000 $21.300
Creek Company uses the percentage of credit sales method in determining its bad debt expense. The following information comes from the accounting records of Creek Company: $ 290,000 Cash sales Credit sales Total sales 710,000 1,000,000 8,000 Credit balance in the Allowance for Doubtful Accounts Bad debt loss rate 3% What is the estimated bad debt expense? Multiple Choice $30,000 $22.000 $21.300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4
![Creek Company uses the percentage of credit sales method in determining its bad debt expense. The following information comes from the accounting records of Creek Company:
Cash sales
Credit sales
Total sales
Credit balance in the Allowance for Doubtful Accounts
Bad debt loss rate
What is the estimated bad debt expense?
M
Multiple Choice
O
O
$30,000
O
$22.000
$21,300
$29,300
$ 290,000
710,000
1,000,000
8,000
< Praw
3%
4 of 1
BEB
No
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Transcribed Image Text:Creek Company uses the percentage of credit sales method in determining its bad debt expense. The following information comes from the accounting records of Creek Company:
Cash sales
Credit sales
Total sales
Credit balance in the Allowance for Doubtful Accounts
Bad debt loss rate
What is the estimated bad debt expense?
M
Multiple Choice
O
O
$30,000
O
$22.000
$21,300
$29,300
$ 290,000
710,000
1,000,000
8,000
< Praw
3%
4 of 1
BEB
No
Activate Wind
Go to Settings to ac
Rain to stop
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