please correct the ones that I did wrong

5 practice homework #2

Bad Debt Expense: Percentage of Credit Sales Method The Glass House, a glass and china store, sells nearly half its merchandise on credit. During the past 4 years, the following data were developed for credit sales and losses from uncollectible accounts: "Losses from uncollectible accounts are the Ictual losses related to sales of that year (rather than write-offs of that year). Required: 1. Calculate the loss rate for each year from 2020 through 2023. Round your answers to three decimal places. 2. Is there a significant change in the loss rate over time? 3. Conceptual Connection: The weighted average for the 4 years (rounded to three decimais) is If credit sales for 2024 are $400,000, what rate would you recommend to estmate bad debts? A rate closer to X would be more conservative. Fethoc: Torek My Won 18. 2. Use the data from priar years to calculate losses from uncollectble accounts as a percentage of credit sales. Consider how the loss rate has changed over. the years. 4. If credit sales for 2024 are $400,000 and using the rote you recommended above, record bad debt expense for 2024 . Round your answer to three decimal places. x Record adjusting entry for bad debt expense estimate Foedber: r Chear Mrwok 4. Make the best estimate of bad debt expense you can. 5. Conceptual Connection: Using the data from 2020 through 2023, estimate the change in income from operations in total for those 4 years assuming (a) the average gross.margin is 25% and (b) 50% of the sales would have been lost if no credit was granted. Round your answers to the nearest doliar, if required