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The Blue Taco reports 100,000 of A/R and 10,000 of ADA (CR) at the end of last year. This year, they had credit sales of
The Blue Taco reports 100,000 of A/R and 10,000 of ADA (CR) at the end of last year. This year, they had credit sales of 500,000, cash collections of 400,000, and wrote off 15,000 of bad debts. An analysis of their accounts suggests that 5% of their receivables will be uncollectible. What is: 1) Ending A/R? 2) Ending ADA? 3) Bad debt expense?
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