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Problem 8-04A a-c Here is information related to Cullumber Company for 2022. Total credit sales Accounts receivable at December 31 Bad debts written off $1,440,000
Problem 8-04A a-c Here is information related to Cullumber Company for 2022. Total credit sales Accounts receivable at December 31 Bad debts written off $1,440,000 720,000 35,700 (a) What amount of bad debt expense will Cullumber Company report if it uses the direct write-off method of accounting for bad debts? Bad debts expenses (b) Assume that Cullumber Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 4% of accounts receivable will become uncollectible. What amount of bad debt expense will the company record if Allowance for Doubtful Accounts has a credit balance of $3,300? Bad debts expenses (c) Assume the same facts as in (b), except that there is a $900 debit balance in Allowance for Doubtful Accounts. What amount of bad debt expense will Cullumber record? Bad debts expense
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