Ervin Company uses the allowance method to account for uncollectible accounts receivable. The allowance account is adjusted based on bad debt expense as a percentage of credit sales. For 2024 , net credit sales totaled $5,800,000, and the estimated bad debt percentage is 1.40%. No previously written-off accounts receivable were reinstated during 2024 . The allowance for uncollectible accounts had a credit balance of $55,000 at the beginning of 2024 and $46,500, after adjusting entries, at the end of 2024 . Required: 1. What is bad debt expense for 2024 as a percent of net credit sales? 2. Assume Ervin makes no other adjustment of bad debt expense during 2024. Determine the amount of accounts receivable written off during 2024. 3. If the company uses the direct write-off method, what would bad debt expense be for 2024
Other questions asked by students
During the past five years, you owned two stocks that had the following annual rates of...
Find the perimeter of the smaller figure given that the two figures are similar 30...
of the following statements is false one Every chord is part of a secant Every...
Find the horizontal and vertical asymptotes of f(x). Then graph f(x).x+4x+2f(x) =If there is a...
14. Stretch Your Thinking Marshall surveyed his classmatesand found that have a sister, have a...
A defunct website listed the average annual income for Florida as 35 031 What is...
5 Prove that the following statements are equivalent a P is a projective module b...