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4 years ago

5

Bad debts expense is estimated by the percent-of-sales method. The management estimates that 3% of net credit sales will be unco

llectible. Calculate the amount of bad debts expense for 2015 and prepare the Journal Entry.

1 answer:

Hoochie [10]4 years ago

8 0

Explanation:

Total Sales = 75,000

Bad debt = 75,000*3% = 2250

Entry: Debit Credit

Bad debt expense 2250

Allowance for Doubtful debt 2250

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