A company uses the percent of sales method to determine its bad debts expense. A

Question

A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable Allowance for uncollectible accounts Net Sales $347,000 debit 68? debit 792,000 credit All sales are made on credit. Based on past experience, the company estimates that 0.4% of net credit sales are uncollectible, what amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? Multiple Choice $3,168 $2,068 $2,488

Explanation / Answer

Credit sale is $ 792,000 /- Estimated bad debt is = 0.4% Estimated bad debt is = 792000*0.4% Estimated bad debt is = $ 3,168 /- Answer is $ 3,168 /-

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.