1) Labrador Inc. has the following information available for the current year:

Net sales	$765,000
Bad Debt Expense	$45,000
Accounts Receivable, Beginning of Year	$135,000
Accounts Receivable, End of Year	$70,000
Allowance For Doubtful Accounts, Beginning of Year	$57,000
Allowance For Doubtful Accounts, End of Year	$77,000

What was the amount of write-offs during the year?

a) $25,000

b) $77,000

C) $0

D) $70,000

2) Cary Inc. reported net credit sales of $370,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $675. The company has experienced bad debt losses of 2% of credit sales in prior periods. Using the percentage of credit sales method, what amount should the company record as an estimate of Bad Debt Expense?

a) $7,400

B) $8,075

C) $2,700

D) $2,025

3) Jensen Company uses the percentage of credit sales method for calculating Bad Debt Expense. The company reported $244,500 in total sales during the year; $197,000 of which were on credit. Jensen has experienced bad debt losses of 7% of credit sales in prior periods. What is the estimated amount of Bad Debt Expense for the year?

a) $14,000.

B) $13,790.

C) $17,115.

D) $47,500.

4) Plasma Inc. uses the percentage of credit sales method to estimate Bad Debt Expense. The company reported net credit sales of $610,000 during the year. Plasma has experienced bad debt losses of 3% of credit sales in prior periods. At the beginning of the year, Plasma has a credit balance in its Allowance for Doubtful Accounts of $5,100. No write-offs or recoveries were recorded during the year. What amount of Bad Debt Expense should Plasma recognize for the year?

a) $13,200.

B) $18,300.

C) $5,100.

D) $23,400.