Question
Information on Hohenberger Company for 2021 follows: Total credit sales $1,000,000 Accounts receivable at December 31 40,000 Uncollectible accounts written off 17,500 Amount collected on
Information on Hohenberger Company for 2021 follows:
Total credit sales | $1,000,000 | |
Accounts receivable at December 31 | 40,000 | |
Uncollectible accounts written off | 17,500 | |
Amount collected on accounts previously written off (after write off but before year end) | 2,500 |
Assume that Hohenberger Company decides to estimate its uncollectible accounts using the allowance method and an aging schedule. Uncollectible accounts are estimated to be $24,000. What amount of bad debt expense will Hohenberger Company record if Allowance for Doubtful Accounts had an opening balance of $20,000 on January 1, 2021?
Bad debt expense | $ |
eTextbook and Media
Assume that Hohenberger Company decides to estimate its uncollectible accounts using the allowance method and estimates its bad debt expense at 2.25% of credit sales. What amount of bad debt expense will Hohenberger Company record if Allowance for Doubtful Accounts had an opening balance of $20,000 on January 1, 2021?
Bad debt expense | $ |
eTextbook and Media
Assume the same facts as in part (a) except that the Allowance for Doubtful Accounts had a $12,000 balance on January 1, 2021. What amount of bad debt expense will Hohenberger record on December 31, 2021?
Bad debt expense | $ |
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