Bad Debt Expense: Percentage of Credit Sales Method Bradford Plumbing had the following data for a recent year: Credit sales $547,900 Allowance for doubtful accounts, 1/1 (a credit balance) 8,740 Accounts receivable, 1/1 42,340 Collections on account receivable 489,770 Accounts receivable written off 14,250 Bradford estimates that 2.7% of credit sales will eventually default. Required: 1. Compute bad debt expense for the year (rounding to the nearest whole number). $fill in the blank 1 2. Determine the ending balances in accounts receivable and allowance for doubtful accounts. Ending Balance Accounts receivable $fill in the blank 2 Allowance for doubtful accounts $fill in the
Bad Debt Expense: Percentage of Credit Sales Method Bradford Plumbing had the following data for a recent year: Credit sales $547,900 Allowance for doubtful accounts, 1/1 (a credit balance) 8,740 Accounts receivable, 1/1 42,340 Collections on account receivable 489,770 Accounts receivable written off 14,250 Bradford estimates that 2.7% of credit sales will eventually default. Required: 1. Compute bad debt expense for the year (rounding to the nearest whole number). $fill in the blank 1 2. Determine the ending balances in accounts receivable and allowance for doubtful accounts. Ending Balance Accounts receivable $fill in the blank 2 Allowance for doubtful accounts $fill in the
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 67E
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Bradford Plumbing had the following data for a recent year:
| Credit sales | $547,900 |
| Allowance for doubtful accounts, 1/1 (a credit balance) | 8,740 |
| Accounts receivable, 1/1 | 42,340 |
| Collections on account receivable | 489,770 |
| Accounts receivable written off | 14,250 |
Bradford estimates that 2.7% of credit sales will eventually default.
Required:
1. Compute bad debt expense for the year (rounding to the nearest whole number).
$fill in the blank 1
2. Determine the ending balances in accounts receivable and allowance for doubtful accounts.
| Ending Balance | |
| Accounts receivable | $fill in the blank 2 |
| Allowance for doubtful accounts | $fill in the blank 3 |
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