chap 6 - $66,400 x 4%= $2656 Allowance for bad debts Bad...

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E 6-32 : Determine the amount of bad debt expense : 1) An aging account receivable analysis that probable uncollectible accounts receivable at the year end amount to 3900 Allowance for bad debts Bad debts Beg. 1,300 5,200 5,200 3,900 2) Company policy is to maintain a provision for uncollectible account receivable equal to 4% of outstanding account receivable
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Unformatted text preview: $66,400 x 4%= $2656 Allowance for bad debts Bad debts Beg. 1,300 3,956 3,956 2,656 3) Company policy is to estimate uncollectible accounts receivable as equal to 1% of the previous year’s annual sales, which were $350,000 $350,000 x1% = $35,000 Allowance for bad debts Bad debts Beg. 1,300 36,300 36,300 35,000...
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This note was uploaded on 06/20/2011 for the course ECON 123 taught by Professor Mrews during the Spring '11 term at Korea Advanced Institute of Science and Technology.

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