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parts a b c d Cakula had de amor este diferent methods (LOS) PSB7.7 The following information relates to Benson lad for 2016. Total credit
parts a b c d Cakula had de amor este diferent methods (LOS) PSB7.7 The following information relates to Benson lad for 2016. Total credit sales $250 000 Accounts receivable at 31 December 2016 57 500 Bad debts written off 3625 Required (a) What amount of bad debts expense will Benson Lid report if it uses the direct write-off method of accounting for bad debts? (b) Assume that Benson Ild decides to estimate its bad debts expense based on 5% of accounts receivable. What amount of bad debts expense will the business record if it has an Allowance for Doubtful Debts credit balance of $2000 at 31 December 2015 (c) Assume the same facts as in part 1), except that there is a debit balance of $1 138 in Allowance for Doubtful Debts. What amount of bad debts expense will Benson Lid record? (d) What is the weakness of the direct write-off method of reporting bad debts expenser
parts a b c d
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