Information related to Blossom Company for 2020 is summarized below. Total credit sales   $2,597,000 Accounts receivable at December 31   838,000 Bad debts written off   34,900   (a)   What amount of bad debt expense will Blossom Company report if it uses the direct write-off method of accounting for bad debts? $enter a dollar amount        (b)   Assume that Blossom Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Blossom record if it has an Allowance for Doubtful Accounts credit balance of $3,500? $enter a dollar amount        (c)   Assume that Blossom Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Blossom record if it has an Allowance for Doubtful Accounts debit balance of $3,500? $enter a dollar amount

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Information related to Blossom Company for 2020 is summarized below.

Total credit sales   $2,597,000
Accounts receivable at December 31   838,000
Bad debts written off   34,900

 

(a)   What amount of bad debt expense will Blossom Company report if it uses the direct write-off method of accounting for bad debts?
$enter a dollar amount 
     
(b)   Assume that Blossom Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Blossom record if it has an Allowance for Doubtful Accounts credit balance of $3,500? $enter a dollar amount 
     
(c)   Assume that Blossom Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Blossom record if it has an Allowance for Doubtful Accounts debit balance of $3,500? $enter a dollar amount 
Information related to Blossom Company for 2020 is summarized below.
Total credit sales
$2,597,000
Accounts receivable at December 31
838,000
Bad debts written off
34,900
(a)
What amount of bad debt expense will Blossom Company report if it uses the direct write-off method of accounting for bad de
$
(b)
Assume that Blossom Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt
(c)
Assume that Blossom Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt
Transcribed Image Text:Information related to Blossom Company for 2020 is summarized below. Total credit sales $2,597,000 Accounts receivable at December 31 838,000 Bad debts written off 34,900 (a) What amount of bad debt expense will Blossom Company report if it uses the direct write-off method of accounting for bad de $ (b) Assume that Blossom Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt (c) Assume that Blossom Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt
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