Question
Nightwing Inc was formed in 2016 and sells goods only on account. Selected data related to uncollectible accounts receivable are presented below for your use
Nightwing Inc was formed in 2016 and sells goods only on account. Selected data related to uncollectible accounts receivable are presented below for your use as appropriate.
| 2016 | 2017 | 2018 |
Credit Sales | $10,000 | $11,000 | $10,500 |
Collections on Account (including recoveries of previous write-offs) | 7,000 | 9,800 | 9,700 |
Write offs of Accounts Receivable | 150 | 250 | 350 |
Recoveries of Previous write-offs | 0 | 35 | 45 |
Nightwing Inc uses percentage of receivable method for estimating uncollectible accounts receivable. Assume that the company estimates that it cannot collect 8% of its Accounts Receivables
Calculate Bad Debt expense for 2016, 2017 and 2018.
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