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The following data is from the records of Bill's Fruit Emporium for 2017: Net credit sales - $550,000 Allowance for Doubtful Accounts - $15,000 (as
The following data is from the records of Bill's Fruit Emporium for 2017: Net credit sales - $550,000 Allowance for Doubtful Accounts - $15,000 (as of 1/1/2017) Accounts Receivable - $325,000 (as of 12/31/2017) Cash collections on account in 2017 - $425,000 Accounts Receivable written off in 2017 - $13,500 Estimated uncollectable accounts based on aging the accounts - $ 9900 Percent of uncollectable accounts receivable based on past experience 2% If the aging method approach is used to estimate bad debts, what amount should be recorded as bad debt expense for 2017? a. $8400 b. $11,000 C. $11,400 d. $9900 Refer to the information in #3 above. If the percentage of credit sales method is used, what is the balance in the Allowance for Doubtful Accounts on 12/31/2017? a. $11,000 b. $12,500 C. $11,400 d. $9900
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