P9.2A (LO 2) Writing Information related to Mingenback Company for 2020 is summarized below. $2,500,000 875,000 33,000 Total credit sales Accounts receivable at December 31 Bad debts written off Instructions a. What amount of bad debt expense will Mingenback Company report if it uses the direct write-off method of accounting for bad debts? b. Assume that Mingenback Company estimates its bad debt expense based on 6% of accounts receiv- able. What amount of bad debt expense will Mingenback record if it has an Allowance for Doubtful Accounts credit balance of $3,000?

P9.2A (LO 2) Writing Information related to Mingenback Company for 2020 is summarized below. $2,500,000 875,000 33,000 Total credit sales Accounts receivable at December 31 Bad debts written off Instructions a. What amount of bad debt expense will Mingenback Company report if it uses the direct write-off method of accounting for bad debts? b. Assume that Mingenback Company estimates its bad debt expense based on 6% of accounts receiv- able. What amount of bad debt expense will Mingenback record if it has an Allowance for Doubtful Accounts credit balance of $3,000?

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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