Bradford Plumbing had the following data for a recent year: Credit sales ............................................................ $547,900 Allowance for doubtful

Question:

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).
2. Determine the ending balances in and allowance for doubtful accounts?
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...