Question
The account balances ofOrioleCompany at December 31, 2021, the end of the current year, show Accounts Receivable $147,600; Allowance for Doubtful Accounts $1,800(credit); Sales $1,173,400;
The account balances ofOrioleCompany at December 31, 2021, the end of the current year, show Accounts Receivable $147,600; Allowance for Doubtful Accounts $1,800(credit); Sales $1,173,400; Sales Returns and Allowances $50,000; and Sales Discounts $16,400.
Assume instead that the Allowance for Doubtful Accounts had a debit balance of $2,100at December 31, 2021. What is bad debt expense for 2021, and what is the carrying amount of the accounts receivable at December 31, 2021, assuming bad debts are estimated to be (1)10% of accounts receivable, and (2)1.5% of net sales?(1)(2)Bad debts expense$1)(2)Carrying amount
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