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VladimirAG [237]
3 years ago
10

During the​ year, credit sales were​ $820,000. Cash collected on credit sales was​ $750,000, and​ $15,000 was written off. Smoot

hie 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​ ________.
Business
1 answer:
KengaRu [80]3 years ago
3 0

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  

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