Start Time 0609 PM On December 31 Sales are 2250000 Accounts

Start Time: 06:09 PM On December 31: Sales are $2,250,000, Accounts Receivable is $894,000, and the Allowance for Bad Debts is $11,600 credit Under the allowance method, if bad debts are estimated at 4% of net sales, what amount of bad debts expense will be recorded on December 317 3 exact number, no tolerance 4) 2 6 9

Solution

Answer Exam 3 - Question 5 Amount of bad debt expense recorded on December 31 = net Sales * % of net sales = $22,50,000 * 4% = $90,000 Answer Exam 3 - Question 6 Amount of bad debt expense recorded on December 31 = net Sales * % of net sales = $22,50,000 * 4% = $90,000