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Ervin Company uses the allowance method to account for uncollectible accounts recelvable. The allowance account is adjusted bas on bad debt expense as a percentage
Ervin Company uses the allowance method to account for uncollectible accounts recelvable. The allowance account is adjusted bas on bad debt expense as a percentage of credit sales. For 2024 , net credit sales totaled $4,500,000, and the estimated bad debt percentage is 1.5\%. No previously written-off accounts recelvable were reinstated during 2024 . The allowance for uncollectible accounts had a credit balance of $42,000 at the beginning of 2024 and $40,000, after adjusting entries, at the end of 2024 . Required: 1. What is bad debt expense for 2024 as a percent of net credit sales? 2. Assume Ervin makes no other adjustment of bad debt expense during 2024. Determine the amount of accounts recelvable written off during 2024 . 3. If the company uses the direct write-off method, what would bad debt expense be for 2024
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