Here is information related to Metlock Company for 2022. Total credit sales $2,556,000 Accounts receivable at December 31 904,000 Uncollectibles written off 32,200 (a) What amount of bad debt expense will Metlock Company report if it uses the direct write-off method of accounting for ur 2$ 32,200 (b) Assume that Metlock Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that o Assume that Metlock Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that e

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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pleasebhelp me woth a b and c i don't understand how

 

 

Here is information related to Metlock Company for 2022.
Total credit sales
$2,556,000
Accounts receivable at December 31
904,000
Uncollectibles written off
32,200
(a)
What amount of bad debt expense will Metlock Company report if it uses the direct write-off method of accounting for uncolle
32,200
(b)
Assume that Metlock Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 6% of
(c)
Assume that Metlock Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 6% of
Transcribed Image Text:Here is information related to Metlock Company for 2022. Total credit sales $2,556,000 Accounts receivable at December 31 904,000 Uncollectibles written off 32,200 (a) What amount of bad debt expense will Metlock Company report if it uses the direct write-off method of accounting for uncolle 32,200 (b) Assume that Metlock Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 6% of (c) Assume that Metlock Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 6% of
Total credit sales
$2,556,000
Accounts receivable at December 31
904,000
Uncollectibles written off
32.200
Icollectible. What amount of bad debt expense will Metlock record if Allowance for Doubtful Accounts has a credit balance of $4,000?
icollectible. What amount of bad debt expense will Metlock record if Allowance for Doubtful Accounts has a debit balance of $4,000?
Transcribed Image Text:Total credit sales $2,556,000 Accounts receivable at December 31 904,000 Uncollectibles written off 32.200 Icollectible. What amount of bad debt expense will Metlock record if Allowance for Doubtful Accounts has a credit balance of $4,000? icollectible. What amount of bad debt expense will Metlock record if Allowance for Doubtful Accounts has a debit balance of $4,000?
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