Question
Here is information related to Bramble Company for 2022. Total credit sales $1,572,000 Accounts receivable at December 31 829,000 Bad debts written off 32,300 (a)
Here is information related to Bramble Company for 2022.
Total credit sales | $1,572,000 | |
Accounts receivable at December 31 | 829,000 | |
Bad debts written off | 32,300 |
(a) What amount of bad debt expense will Bramble Company report if it uses the direct write-off method of accounting for bad debts? $enter the amount of bad debt from direct write-off method in dollars (b) Assume that Bramble Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 5% 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 $3,300? $enter the amount of bad debt from percentage-of-receivables in dollars (c) Assume that Bramble Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 5% of accounts receivable will become uncollectible. What amount of bad debt expense will the company record if Allowance for Doubtful Accounts has a debit balance of $1,000? $enter the amount of bad debt from percentage-of-receivables in dollars
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