sales discoumts with terms 2/10

Wholesale Warehouse Stores sold $950,000 in merchandise during 2014. Of this amount, $400,000 was on credit with terms 2/10, n/30 (75 percent of these amounts were paid within the discount period), $500,000 was paid with credit cards (there was a 3 percent credit card discount), and the rest was paid in cash. On December 31, 2014, the Accounts Receivable balance was $80,000. The beginning balance in the Allowance for Doubtful Accounts was $9,000 and S6,000 of bad debts was written off during the year. Required: 1. Compute net sales for 2014, assuming that sales and credit card discounts are treated as contra-revenues. 2. Assume that Wholesale uses the percentage of sales method for estimating bad debt expense and that it estimates that 2 percent of credit sales will produce bad debts. Record bad debt expense for2014. 3. Assume instead that Wholesale uses the aging of accounts receivable method and that it estimates that $10,000 worth of current accounts is uncollectible. Record bad debt expense for 2014