Answer:
1. $19,000
2. $16,000
3. $30,200
Explanation:
Complete question <em>"The Accounts Receivable balance for Yak Corporation is $82,000 at October 31, 2020. Before calculating and recording October 2020 bad debt expense, the Allowance for Doubtful Accounts has a debit balance of $3,000. Sales for the month are $950,000. An aging of accounts receivable results in a $17,200 estimate for the Allowance for Doubtful Accounts as of October 31, 2020. In the past several years, 2% of sales have proven uncollectible. </em>
<em>1. If Yak uses the percent of sales method, Bad Debt Expense on the October 2020 Income Statement will be?</em>
<em>2. If Yak uses the percent of sales method, the Allowance for Doubtful Accounts reflected on the October 31, 2020 Balance Sheet will be?</em>
<em>3. If Yak uses the analysis of receivables method, Bad Debt Expense on the October 2020 Income Statement will be:</em>
1. Bad debt expenses = Sales * 2% of sales have proven uncollectible
Bad debt expenses = $950,000 * 2%
Bad debt expenses = $19,000
2. Allowance for doubtful account balance = Bad debt - Beginning Debit balance
Allowance for doubtful account balance = $19,000 - $3,000
Allowance for doubtful account balance = $16,000
3. Bad debt expenses = Ending Doubtful Accounts balance - Beginning debit balance
Bad debt expenses = $17,200 + $3,000
Bad debt expenses = $30,200
