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Using the Percentage-Of-Receivables Method for Recording Bad Debt Expense Estimated

question 185

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Using the percentage-of-receivables method for recording bad debt expense estimated uncollectible accounts are $45000.If the balance of the Allowance for Doubtful Accounts is $6000 balance before adjustment what is the amount of bad debt expense for that period?


Definitions:

Inventory

The total amount of goods and materials held by a company intended for sale or to be used in the production of goods sold.

Periodic Inventory System

The periodic inventory system is an accounting method where inventory is physically counted at specific intervals and adjustments are made to the inventory records accordingly.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenues, indicating the company's financial health over a period.

FOB Shipping Point

A term of sale indicating that the buyer is responsible for the goods and the shipping cost as soon as the goods leave the seller's premises.

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