ramsey company estimates that 1% of net credit sales will become uncollectible. sales are 400000 sales retures and allowances are 10000 and the allowance for doubtful accounts has a 5000 credit balance before adjustment

Ramsey Company estimates that 1% of net credit sales will become uncollectible. sales returms and allowances are s10005 and the allowance for doubtful accounts has a $5,000 credit balance before adjustment a) What is the amount of bad debt expense for the period? ANSWER: b) What will the balance in the Allowance for Doubtful Accounts account be AFTER the adjusting journal entry is made? ANSWER: 2 Ramsey Company estimates that 3% ofaccounts receivable will become uncollectible. Accounts receivable are S200,000 at the end of the year, and the allowance for doubtful accounts has a S500 debit balance before adjustment. a) What is the amount of bad debt expense for the period