Question

During the​ year, credit sales were​ $820,000. Cash collected on credit sales was​ $750,000, and​ $15,000 was written off. Smoothie Town uses the​ aging-of-receivables method to record bad debts expense. The amount estimated as uncollectible was​ $28,000. The amount of Bad Debts Expense for 2017 is​ ________.

Answer 1

Answer:

$37,000

Explanation:

The computation of the bad debt expense is shown below:

= Amount estimated as uncollectible + written off amount - credit balance of allowance for bad debts

= $28,000 + $15,000 - $6,000

= $37,000

We simply applied the above formula to determine the bad debt expense. Hence, all other information which is given is not relevant therefore, ignored it