Compute Bad Debt Expense Based on the Following Information

question 181

Essay

Compute bad debt expense based on the following information:
(a) LRP Company estimates that 3% of net credit sales will become uncollectible. Sales revenue are $600000 sales returns and allowances are $30000 and the allowance for doubtful accounts has a $5000 credit balance.
(b) LRP Company estimates that 10% of accounts receivable will become uncollectible. Accounts receivable are $160000 at the end of the year and the allowance for doubtful accounts has a $400 debit balance.

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Definitions:

Appointment Status

An indication of the current condition or progression of a scheduled meeting or event, such as confirmed, pending, or cancelled.

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Calendar

A system of organizing days for social, religious, commercial, or administrative purposes, often displayed as a table or chart.