Thompson Corporation's unadjusted trial balance includes the following balances (assume normal balances):• Accounts receivable $

Question

4 years ago

11

Thompson Corporation's unadjusted trial balance includes the following balances (assume normal balances):• Accounts receivable $

1,492,000• Allowance for doubtful accounts $ 28,400Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debt expense will the company record?

Business

1 answer:

xz_007 [3.2K] · Answer 1 · 2022-02-26T07:45:02+03:00

Answer:

$87.816

Explanation:

First you have to calculate the Oustanding receivables, that you can calculre with the next formula:

Oustanding receivables= Accounts recivable- Allowance for doubtful accounts

Oustanding receivables= 1.492.000 - 28.400

Oustanding receivables= 1.463.600

Now that you have the result have to multiply by the 6% to calculate the bad debt.

Bad debt = 1.463.600* 6%= $87.816

its the bad debt of Thompson Corporation's