Information related to Mingenhack Company for 2017 is summarized below Total cre
ID: 2573914 • Letter: I
Question
Information related to Mingenhack Company for 2017 is summarized below Total credit sales Accounts receivable at December 31 Bad debts written off $2,419,000 845,000 34,900 (a) What amount of bad debt expense will Mingenback Company report if it uses the direct write-off method of accounting for bad debts? (b) Assume that Mingenback Company estimates its bad debt expense to be 2% of credit sales. What amount of bad debt expense will Mingenback record if it has an Allowance for Doubtful Accounts credit balance of $4,0002$ (c) Assume that Mingenback Company estimates its bad debt expense based on 5% of accounts receivable. What amounto bad debt expense wil Mingenback record if it has an Allowance for Doubtful Accounts credit balance of $3,000?$ d) Assume that Mingenback Company estimates its bad debt expense based on 5% of accounts receivable. what amount of bad debt expense wil Mngenback record i it has an Allowance for Doubtful Accounts debit balance of $3,000? $Explanation / Answer
(a) $34,900
(b) $44,380
(c) $39,250
(d) $39,250
Credit sales 2,419,000 Bad debts at 2% 48,380 Less: Credit balance of Allowance for doubtful Accounts 4,000 Bad debts expenses 44,380