Information on Pharoah Company for 2021 follows:

Total credit sales		$880,000
Accounts receivable at December 31		35,200
Uncollectible accounts written off		14,500
Amount collected on accounts previously written off (after write off but before year end)		3,900

(a)

Correct answer icon

Your answer is correct.

Assume that Pharoah 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 Pharoah Company record if Allowance for Doubtful Accounts had an opening balance of $14,600 on January 1, 2021?

Bad debt expense

$

b-

Assume that Pharoah 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 Pharoah Company record if Allowance for Doubtful Accounts had an opening balance of $14,600 on January 1, 2021?

Bad debt expense

$

(c)

Your answer is incorrect.

Assume the same facts as in part (a) except that the Allowance for Doubtful Accounts had a $8,600 balance on January 1, 2021. What amount of bad debt expense will Pharoah record on December 31, 2021?

Bad debt expense

$