Business, 01.09.2020 23:01 cotybuge2701
Uncollectible accounts; allowance method estimating bad debts as percentage of net sales vs. direct write-off method [LO7-5, 7-6) Ervin Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2021, net credit sales totaled $6,500,000, and the estimated bad debt percentage is 1.50%. No previously written-off accounts receivable were reinstated during 2021. The allowance for uncollectible accounts had a credit balance of $62,000 at the beginning of 2021 and $50,000, after adjusting entries, at the end of 2021. Required: 1. What is bad debt expense for 2021 as a percent of net credit sales? 2. Assume Ervin makes no other adjustment of bad debt expense during 2021. Determine the amount of accounts receivable written off during 2021. 3. If the company uses the direct write-off method, what would bad debt expense be for 2021? 1. Bad debt expense $97,5002. Accounts receivable written off $15,0003. Bad debt expense $98,430
Answers: 1
Business, 21.06.2019 20:00
Which financial component is a mandatory deduction from your gross pay? a. sales tax b. social security tax c. health insurance d. disaster relief fund (drf) e. voluntary deduction
Answers: 1
Business, 22.06.2019 02:00
What is the main role of ctsos at the local level? at the local level, the main role of ctsos is to encourage students to become urge them to programs and competitive events.1. a.internsb.traineesc.members2.a.participateb.trainc.win
Answers: 3
Business, 22.06.2019 13:30
What do you recommend adam do to increase production in a business setting that does not seem to value high productivity?
Answers: 3
Business, 22.06.2019 20:20
An economic theory that calls for workers to take control of factories is .
Answers: 3
Uncollectible accounts; allowance method estimating bad debts as percentage of net sales vs. direct...
English, 11.10.2020 05:01
Chemistry, 11.10.2020 05:01
History, 11.10.2020 05:01
Mathematics, 11.10.2020 05:01
Computers and Technology, 11.10.2020 05:01
Mathematics, 11.10.2020 05:01
Social Studies, 11.10.2020 05:01
Chemistry, 11.10.2020 05:01
Mathematics, 11.10.2020 05:01
Biology, 11.10.2020 05:01