date credit sales have been $$15,500.$ A review of outstanding receivables resulted in the following aging schedule:

$($Click the icon to view the aging schedule.$)$

Read the requirements.

Requirement $1.$ The company wants to use the allowance method to estimate bad debts. Assume a zero beginning balance for Allowance for Bad Debts.

a$.$ Determine the estimated bad debts expense under the percent$-$of$-$sales methods at June $30,2019.$ Assume that $4\mathrm{.}5\%$ of credit sales will not be collected. $($Round to the nearest dollar.$)$

Method

Estimated Bad Debts

a$.$ Percent$-$of$-$sales