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Tableau Dashboard Activity 6-2 LO 6-2 Citrus Distributors have just concluded their first year of operations. They are evaluating their approach to bad debt expense.
Tableau Dashboard Activity 6-2 LO 6-2 Citrus Distributors have just concluded their first year of operations. They are evaluating their approach to bad debt expense. They currently utilize the aging approach to estimate bad debt expense but would like to compare the results to the percentage of sales approach. The below dashboard presents the two different approaches: Accounts Receivable Aging Not Yet Due Up to 90 Days Past Due Over 90 Days Past Due Estimated Uncollectible Estimated Collectible $0 $40,000 $80,000 $120,000 $160,000 $200,000 $240,000 $280,000 Balance Total Sales Breakdown Total Sales Breakdown +ableau Sales Less Bad Debt Estimate Bad Debt Estimate Account Bad Debt Estimate Sales Less Bad Debt Estimate K Required: 1. What was the estimated uncollected percentage used to determine the estimated uncollectible amount for each of the aging categories? Not Yet Due % Up to 90 Days Past Due % Over 90 Days Past Due % 2. What percentage of total credit sales was used to estimate bad debt using the percentage of sales approach? Percentage of total credit sales % 3. What would be the total estimated bad debt under each approach: Aging Approach Percentage of Sales Approach 4. If the company decides to modify their bad debt approach from the aging method to the percentage of sales method, the amount of bad debt would: The amount of bad debt would
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