Wasco Company has experienced bad debt losses of 5% of credit sales in prior per
ID: 2450459 • Letter: W
Question
Wasco Company has experienced bad debt losses of 5% of credit sales in prior periods. At the end of the year, the balance of Accounts Receivable is $107,000 and the Allowance for Doubtful Accounts has an unadjusted credit balance of $850. Net credit sales during the year were $164,000. Using the percentage of credit sales method, what is the estimated Bad Debt Expense for the year?
Wasco Company has experienced bad debt losses of 5% of credit sales in prior periods. At the end of the year, the balance of Accounts Receivable is $107,000 and the Allowance for Doubtful Accounts has an unadjusted credit balance of $850. Net credit sales during the year were $164,000. Using the percentage of credit sales method, what is the estimated Bad Debt Expense for the year?
Explanation / Answer
estimated Bad Debt Expense for the year =5% of credit sales 164000 =8200
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