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A trial balance for Green Company before adjustment included the following: Debit Credit Accounts receivable $140,000 Allowance for doubtful accounts 730 Sales $610,000 Sales returns
A trial balance for Green Company before adjustment included the following: Debit Credit Accounts receivable $140,000 Allowance for doubtful accounts 730 Sales $610,000 Sales returns and allowances 8,000 Instructions: Calculate bad debt expense assuming that the estimate of uncollectible accounts is determined by taking 1) 5% of gross accounts receivable; (2) 3% of gross accounts receivable and assume a $600 debit balance; 3) 10% of net sales. (Assume each of this is an independent scenario).
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