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Here is information related to Sheridan Company for 2022. Total credit sales Accounts receivable at December 31 Bad debts written off $1.611,000 805,500 40,700 (a)
Here is information related to Sheridan Company for 2022. Total credit sales Accounts receivable at December 31 Bad debts written off $1.611,000 805,500 40,700 (a) What amount of bad debt expense will Sheridan Company report if it uses the direct write-off method of accounting for bad debts? Bad debts expense $ (b) Assume that Sheridan 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 $2,700? Bad debts expense $ (c) Assume the same facts as in (b), except that there is a $900 debit balance in Allowance for Doubtful Accounts. What amount of bad debt expense will Sheridan record? Bad debts expense $ $
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