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Using the % of Sales Allowance method: A Company has $100,000 in Credit Sales for the year and ends the year with $10,000 in AR.

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Using the % of Sales Allowance method: A Company has $100,000 in Credit Sales for the year and ends the year with $10,000 in AR. 1)What is the BDE for a company who estimates bad debt based on 2% of Credit Sales. 2) What is the ending balance in ADA? 1) BDE is $2,000 2) ADA cannot be determined based on info given 1) BDE is $200 2) ADA cannot be determined based on answer given 1) BDE is $2,000 2) ADA is $2,000 1) BDE is $200 2) ADA is $200

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