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Information related to Sheridan Company for 2020 is summarized below Total credit sales Accounts receivable at December 31 Bad debts written off $2,554,000 831,000 32,100
Information related to Sheridan Company for 2020 is summarized below Total credit sales Accounts receivable at December 31 Bad debts written off $2,554,000 831,000 32,100 (a) What amount of bad debt expense will Sheridan Company report if it uses the direct write-off method of accounting for bad debts? Assume that Sheridan Company estimates its bad debt expense based on 6% of accounts receivable, what amount of bad debt expense will Sheridan record if it has an Allowance for Doubtful Accounts credit balance of $4,300 $ Assume that Sheridan Company estimates its bad debt expense based on 6% of accounts receivable, what amount of bad debt expense will Sheridan record if it has an Allowance for Doubtful Accounts debit balance of $4,300? $ Click if you would like to Show Work for this
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