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yan [13]
3 years ago
9

Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $47000. If the b

alance of the Allowance for Doubtful Accounts is $5400 credit before adjustment what is the amount of bad debt expense for that period?
Business
1 answer:
LekaFEV [45]3 years ago
3 0

Answer: $41,600

Explanation: The percentage of receivables method is used to evaluate the amount of bad debt the company can experience in future. Under this method, the bad debt expense is the difference between the ledger balance and the actual balance of bad debt expense.

In the given case, we can calculate it as follows :-

Bad debt expense = estimated uncollectible accounts - allowance

                                = $47,000 - $5,400

                                = $41,600

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Smashing Pumpkins Co. uses the LCM method, on an individual-item basis, in pricing its inventory items. The inventory at Dec. 31
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3 years ago
In a study on the effect of music on worker productivity, employees were told that a different genre of background music would b
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Hawthorne effect

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3 years ago
On January 1, Year 1, Missouri Co. purchased a truck that cost $35,000. The truck had an expected useful life of 10 years and a
ANTONII [103]

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B. $5600

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4 years ago
Which of the following statements is true of a mission statement?
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5 0
3 years ago
Read 2 more answers
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