Here is information related to Splish Company for 2022. Total credit sales $2,550,000 Accounts receivable at December 31 848,000 Uncollectibles written off 32,000 (a) What amount of bad debt expense will Splish Company report if it uses the direct write-off method of accounting for uncollectibles? $____________ (b) Assume that Splish Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 5% of accounts receivable will become uncollectible. What amount of bad debt expense will Splish record if Allowance for Doubtful Accounts has a credit balance of $3,700? $__________ (c) Assume that Splish Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 5% of accounts receivable will become uncollectible. What amount of bad debt expense will Splish record if Allowance for Doubtful Accounts has a debit balance of $3,700? $__________
Here is information related to Splish Company for 2022. Total credit sales $2,550,000 Accounts receivable at December 31 848,000 Uncollectibles written off 32,000 (a) What amount of bad debt expense will Splish Company report if it uses the direct write-off method of accounting for uncollectibles? $____________ (b) Assume that Splish Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 5% of accounts receivable will become uncollectible. What amount of bad debt expense will Splish record if Allowance for Doubtful Accounts has a credit balance of $3,700? $__________ (c) Assume that Splish Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 5% of accounts receivable will become uncollectible. What amount of bad debt expense will Splish record if Allowance for Doubtful Accounts has a debit balance of $3,700? $__________
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Practice Pack
Here is information related to Splish Company for 2022.
| Total credit sales | $2,550,000 | |
| 848,000 | ||
| Uncollectibles written off | 32,000 |
|
(a)
|
What amount of $____________ |
|---|
|
(b)
|
Assume that Splish Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 5% of accounts receivable will become uncollectible. What amount of bad debt expense will Splish record if Allowance for Doubtful Accounts has a credit balance of $3,700? $__________ |
|---|
|
(c)
|
Assume that Splish Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 5% of accounts receivable will become uncollectible. What amount of bad debt expense will Splish record if Allowance for Doubtful Accounts has a debit balance of $3,700? $__________ |
|---|
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