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12. The Andrews Company makes sales on credit of $400,000 in Year One and $500,000 in 202 and recognizes those amounts for income tax purposes.
12. The Andrews Company makes sales on credit of $400,000 in Year One and $500,000 in 202 and recognizes those amounts for income tax purposes. The company operates on the accrual basis of accounting and believes that 2 percent of all credit sales will prove to be worthless. In Year One, $3,000 in accounts are judged to be completely worthless along with another $12,000 in 202. What is reported by the company as its bad debt expense for income tax purposes? - $8,000 in Year One and $10,000 in 202 - $3,000 in Year One and $12,000 in 202 - $3,000 in Year One and $10,000 in 20X2 - $8,000 in Year One and $12,000 in 202
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