Saint John Industries uses the percentage of credit sales method to estimate Bad Debt Expense. The company reported net credit sales of $580,000 during the year. Saint John has experienced bad debt losses of 6% of credit sales in prior periods. At the beginning of the year, Saint John has a credit balance in its Allowance for Doubtful Accounts of $4,800. No write-offs or recoveries were recorded during the year. What amount of Bad Debt Expense should Saint John recognize for the year? Multiple Choice O O $39,600 $4,800 $30,000 $34.800
Saint John Industries uses the percentage of credit sales method to estimate Bad Debt Expense. The company reported net credit sales of $580,000 during the year. Saint John has experienced bad debt losses of 6% of credit sales in prior periods. At the beginning of the year, Saint John has a credit balance in its Allowance for Doubtful Accounts of $4,800. No write-offs or recoveries were recorded during the year. What amount of Bad Debt Expense should Saint John recognize for the year? Multiple Choice O O $39,600 $4,800 $30,000 $34.800
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter16: Accounting For Accounts Receivable
Section: Chapter Questions
Problem 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...
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![Saint John Industries uses the percentage of credit sales method to estimate Bad Debt Expense. The company reported net credit sales of $580,000 during the year. Saint John has experienced bad debt losses of 6%
of credit sales in prior periods. At the beginning of the year, Saint John has a credit balance in its Allowance for Doubtful Accounts of $4,800. No write-offs or recoveries were recorded during the year. What amount of
Bad Debt Expense should Saint John recognize for the year?
Multiple Choice
O
O
$39,600
$4,800
$30,000
$34.800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11a64bba-74c0-4fd7-b16b-3d8fff0a6ac2%2F3010e188-a65a-4f8f-9a0a-50d33d4fed69%2Fra7rqep_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Saint John Industries uses the percentage of credit sales method to estimate Bad Debt Expense. The company reported net credit sales of $580,000 during the year. Saint John has experienced bad debt losses of 6%
of credit sales in prior periods. At the beginning of the year, Saint John has a credit balance in its Allowance for Doubtful Accounts of $4,800. No write-offs or recoveries were recorded during the year. What amount of
Bad Debt Expense should Saint John recognize for the year?
Multiple Choice
O
O
$39,600
$4,800
$30,000
$34.800
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