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Information related to Mingenback Company for 2017 is summarized below. Total credit sales $2,558,000 Accounts receivable at December 31 845,000 Bad debts written off 34,300
Information related to Mingenback Company for 2017 is summarized below.
Total credit sales $2,558,000
Accounts receivable at December 31 845,000
Bad debts written off 34,300
A) What amount of bad debt expense will Mingenback Company report if it uses the direct write-off method of accounting for bad debts?
B) Assume that Mingenback Company estimates its bad debt expense to be 3% of credit sales. What amount of bad debt expense will Mingenback record if it has an Allowance for Doubtful Accounts credit balance of $3,500?
C) Assume that Mingenback Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Mingenback record if it has an Allowance for Doubtful Accounts credit balance of $2,400?
D) Assume that Mingenback Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Mingenback record if it has an Allowance for Doubtful Accounts debit balance of $2,400?
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