Secure https//edugen infr.uni Kimmel, Financial Accounting, 8e Study & Practice
ID: 2515172 • Letter: S
Question
Secure https//edugen infr.uni Kimmel, Financial Accounting, 8e Study & Practice Assignment Gradebook ORION Downloadable eTextbook Open Assignment RESOURCESProblem 8-4A Here is information related to Sunland Company for 2017. Total credit sales $1,424,000 712,000 7,900 Accounts receivable at December 31 cise 8-4 sise 8-5 Bad debts written off (a) What amount of bad debt expense will Sunland Company report if it uses the direct write-off method of accour Bad debts expense (b) Assume that Sunland Company decides to estimate its bad debt expense based on 4% of accounts receivable ore sults by Study ead debts expense (c) Assume the same facts as in (b), except that there is a $1,000 debit balance in Allowance for Doubtful Accounts Bad debts expense LINK TOExplanation / Answer
a)
Bad debt expenses = $ 37,900
b)
Bad debt = $ 712,000 x 4 % = $ 712,000 x 0.04
= $ 28,480
c)
Bad debt (712,000 x 4%)
$ 28,480
Add: debit balance
$ 1,000
Total bad debt
$ 29,480
Bad debt (712,000 x 4%)
$ 28,480
Add: debit balance
$ 1,000
Total bad debt
$ 29,480