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During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $760,000 and $18,000 has been written off. At the end
During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $760,000 and $18,000 has been written off. At the end of the year, company adjusted for bad debts expense using the percentminusofminussales method and applied a rate, based on past history, of 2.5%. The ending balance in the Allowance for Bad Debts would be:
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