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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:

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 6PA: Funnel Direct recorded $1,345,780 in credit sales for the year and $695,455 in accounts receivable....
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The trial balance before adjustment of Rose Company reports the following balances:

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 bad debt expense, and

b) 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:
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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