A company uses the percentage of net sales method for estimating a bad debt expense at 4%. If the company sold $500,000 worth of merchandise for the year and had $15,000 in receivables at year end and a balance in its allowance doubtful for accounts of $2,000 record the journal entry for the bad debt expense for the year. A Company uses the percentage of receivables method for estimating bad debt expense at 10%. If the company sold $500,000 worth of merchandise for the year and had $15,000. Record the journal entry for the bad debt expense for the year. Ex. A company sells a year's worth of magazine subscriptions on January 1 for $1200,00. On January 31, they close the book and must account for the expense. Record the journal entries on January 1 and January 31. XYZ company purchased inventory with the following costs and quantities. A count of inventory at year end showed 1100 units. Calculate the cost of goods sold under FIFO, LIFO and weighted average