Total credit sales of the company was OMR 100,000 and total credit purchase was OMR 60,000. The estimated bad debts expense based on past experience is 8%. Calculate the value of bad debts expense under percentage of sales method. E (1 Mark) OMR 12,800 OMR 3,200 OMR 4,800 OMR 8,000

Total credit sales of the company was OMR 100,000 and total credit purchase was OMR 60,000. The estimated bad debts expense based on past experience is 8%. Calculate the value of bad debts expense under percentage of sales method. E (1 Mark) OMR 12,800 OMR 3,200 OMR 4,800 OMR 8,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Total credit sales of the company was OMR 100,000 and total credit purchase was OMR 60,000. The estimated bad debts expense based on past
experience is 8%. Calculate the value of bad debts expense under percentage of sales method.
E (1 Mark)
OMR 12,800
OMR 3,200
OMR 4,800
OMR 8,000

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