This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: has an Allowance for Doubtful Accounts credit balance of $3,000? $46,500 ($825,000 X 6%) $3,000 (d) Assume the same facts as in (c), except that there is a $3,000 debit balance in Allowance for Doubtful Accounts. What amount of bad debts expense will Hermesch record? $52,500 ($825,000 X 6%) + $3,000 (e) What is the weakness of the direct write-off method of reporting bad debts expense? Under direct write off method, Bad Debt expense will show only actual losses from un-collectibles. This method does not match bad debt expenses to sales revenues in the income statement References Chapter 9 Exercise P9-2A 3 Financial Accounting, 6e (Jerry J. Weygandt, 2008), Retrieved from: Chapter 9...
View Full Document
- Spring '10