Question
Here is information related to Wildhorse Co. for 2017. Total credit sales $1,547,000 Accounts receivable at December 31 773,500 Bad debts written off 35,200 (a)
Here is information related to Wildhorse Co. for 2017.
Total credit sales $1,547,000 Accounts receivable at December 31 773,500 Bad debts written off 35,200
(a) What amount of bad debt expense will Wildhorse Co. report if it uses the direct write-off method of accounting for bad debts?
Bad debts expense $enter the bad debts expense in dollars assuming option a
(b) Assume that Wildhorse Co. decides to estimate its bad debt expense based on 4% of accounts receivable. What amount of bad debt expense will the company record if Allowance for Doubtful Accounts has a credit balance of $3,200?
Bad debts expense $enter the bad debts expense in dollars assuming option b
(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 Wildhorse Co. record?
Bad debts expense $enter the bad debts expense in dollars assuming option c
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