Determine the Amount of the Adjustment for Bad Debts Given

question 99

Short Answer

Determine the amount of the adjustment for bad debts given:
Bad debts are estimated to be 8% of sales
$\begin{array}{llcc} \text { Accounts receivable balance } &\$370,000 \\ \text { Allowance for bad debts balance (debit) } &\$900\\ \text { Net Sales } &\$200,000\\\end{array}$

$ ________

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Definitions:

Subsystems Design

The process of designing parts of a system that can function independently but contribute to the overall performance and objectives of the whole system.

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Organisational System

A structured arrangement of processes, resources, and people designed to achieve the objectives of an organization in an efficient manner.

Subsystem

A component of a larger system that performs a specific role or function within the overall operation, contributing to the system's efficiency and effectiveness.