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 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Information related to Blossom Company for 2020 is summarized below.
Total credit sales | $2,597,000 | |
838,000 | ||
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 |
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