Percentage of Credit Sales Method At December 31, 2018, Garneau has a $10,000 credit balance in its allowance for doubtful accounts. Garneau estimates that 3% of its 2018 credit sales will eventually default. During 2018, Garneau had credit sales of $1,324,400. Required: Estimate the bad debt expense under the percentage of credit sales method.
Percentage of Credit Sales Method At December 31, 2018, Garneau has a $10,000 credit balance in its allowance for doubtful accounts. Garneau estimates that 3% of its 2018 credit sales will eventually default. During 2018, Garneau had credit sales of $1,324,400. Required: Estimate the bad debt expense under the percentage of credit sales method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Percentage of Credit Sales Method
At December 31, 2018, Garneau has a $10,000 credit balance in its allowance for doubtful accounts. Garneau estimates that 3% of its 2018 credit sales will eventually default. During 2018, Garneau had credit sales of $1,324,400.
Required:
Estimate the
$
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