Answer: $8,400
Explanation:
Given the following:
Amount repaid each month = $150
Number of Periods for which amount was paid = 10 months
Amount left after 10 months payment = $6900
Harry's original debt=?
The total amount paid = $150 × 10 = $1500
Amount left = $6900
Total debt amount:
(Total Amount left + total amount paid )
$(6900 + 1500)
=$8400
Answer:
The bad debt expense which should be recorded in the income statement for the year 2019, amounts to $127,600
Explanation:
The bad debt expense which should be recorded in the income statement for the year 2019 is computed as:
= Net Credit Sales × Uncollectible credit sales for the year 2019
where
Net Credit Sales is $290,000
Uncollectible credit sales for the year 2019 is 44%
Putting the values in the above formula:
= $290,000 × 44%
= $127,600
Paying your phone bill late and maxing out your credit card can hurt your credit score.
