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...
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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:
![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:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F367d59f6-0449-4d89-8e99-ffee24a37072%2F87b59853-cda9-45e7-8901-aeee51869a13%2F270t94h_processed.png&w=3840&q=75)
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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