MUTT-CUTTS is a company that provides dog grooming services. The most recent year financial statement package shows the following information:

_____________________________________Current Year________Previous year__________________

Gross A/R $248,000 $279,000

Allowance $22,250 $26,800

Current year income statement shows that sales revenue totaled $568,750 (all on a credit basis). The statement of cash flows indicated that current year cash collections from customers amounted to $591,250.

Calculate the following (Use a formula in the template cell when applicable):

1. Amount of uncollectible accounts written off during the current year

2. Amount of bad debt expense on the Income Statement for the current year

3. The percentage used to estimate uncollectables assuming income statement approach.

4. The amount of bad debt expense under the direct write-off method (which is not acceptable GAAP)

Open in Desktop File Home Insert Data Review View Help Tell me what you want to do X Cut A* A 2 Wrap Text Calibri 11 B Copy $ - % IUD ab Paste Merge & Center - Format Painter Undo Clipboard Font Alignment fe 9 Total Write-offs 4 Bad Debt Expense % to estimate uncol. Accounts 10 Bad Debt Expense under Direct Write-Off Method 11 12 13 14 15 LL