Chapter 8, Problem 8.6BYP

To determine

Bad debt expense:

Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, bad debt expenses are uncollectible accounts receivable.

To write: A memo of explaining the difference between the percentage of receivables, percentage of sales and direct write-off methods for uncollectible accounts, to Person J.