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Unformatted text preview: The allowance balance on Jan. 1, 2009 was $7,000 (credit). Dallas Company had specific A/R write-offs of $9,000 during 2009. Based only on these facts what is the amount of bad debt expense that should be recognized/booked in 2009? ______________________ 27,000 True or False 6. Booking/recording bad debt expense will reduce Net Income. 7. In 2007 Buffett Inc. had net credit sales of $1,000,000. On Jan. 1, 2007, their allowance for doubtful accounts had a credit balance of $50,000. During 2007, $30,000 of uncollectible accounts receivable were written off. Past experience indicates that 2% of net credit sales become uncollectible. What is the ending allowance for doubtful account balance at Dec. 31, 200 7 ? Russell Co. uses the percentage of credit sales method to estimate bad debt expense. _________________ 40,000 8. Gross Profit = Net Revenue minus: A. Cost of Goods Sold (COGS) B. Credit Card Discounts C. Bad Debt Expense D. Sales Discounts E. B and D...
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This note was uploaded on 05/26/2011 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas at Austin.
- Fall '08
- Financial Accounting