The trial balance before adjustment of Rose Company reports the following balances:Dr. Cr. Accounts receivable $100,000 Allowance for doubtful accounts $ 2,500Sales ( all on credit) 750,000Sales returns and allowances 40,000Instructions9. Assuming that doubtful accounts are estimated to be (1) 6% of gross accounts receivableand (2) 1% of net sales.a) Calculate bad debt expense, andb) calculate allowance for doubtful accounts:
The trial balance before adjustment of Rose Company reports the following balances:Dr. Cr. Accounts receivable $100,000 Allowance for doubtful accounts $ 2,500Sales ( all on credit) 750,000Sales returns and allowances 40,000Instructions9. Assuming that doubtful accounts are estimated to be (1) 6% of gross accounts receivableand (2) 1% of net sales.a) Calculate bad debt expense, andb) calculate allowance for doubtful accounts:
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 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...
Related questions
Question
The
Dr. Cr.Accounts receivable $100,000
Allowance for doubtful accounts $ 2,500
Sales (all on credit) 750,000
Sales returns and allowances 40,000Instructions9.
Assuming that doubtful accounts are estimated to be
(1) 6% of gross accounts receivableand (2) 1% of net sales.
a) Calculate
b) calculate allowance for doubtful accounts:
Transcribed Image Text:The trial balance before adjustment of Rose Company reports the following balances:Dr. Cr. Accounts receivable $100,000 Allowance for doubtful accounts $ 2,500Sales (
all on credit) 750,000Sales returns and allowances 40,000Instructions9. Assuming that doubtful accounts are estimated to be (1) 6% of gross accounts receivableand
(2) 1% of net sales.a) Calculate bad debt expense, andb) calculate allowance for doubtful accounts:
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