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Here is information related to Blossom Company for 2025. Total credit sales Accounts receivable at December 31 Bad debts written off Bad debt expense (a)
Here is information related to Blossom Company for 2025. Total credit sales Accounts receivable at December 31 Bad debts written off Bad debt expense (a) What amount of bad debt expense will Blossom Company report if it uses the direct write-off method of accounting for Bad debts? Bad debt expense $1,579,000 789,500 Bad debt expense 37,300 (b) Assume that Blossom Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 4% of accounts receivable will become uncollectible. What amount of bad debt expense will the company record if Allowance for Doubtful Accounts has a credit balance of $3,200? $ 37300 i (c) Assume the same facts as in part (b), except that there is a $1,100 debit balance in Allowance for Doubtful Accounts. What amount of bad debt expense will Blossom record? 28380 i
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