Answer:
1) The bad debts expense for 2021 as a percent of net credit sales is $ 67,600.
2)Accounts Receivable Written Off $ 24,900
3)If direct method is used the amount of bad debts expense during the year 2021 would be $ 67,600
Explanation:
Ervin Company
Net credit sales $5,200,000,
Beginning Allowance for Uncollectible Accounts $49,000 Cr
Ending Allowance for Uncollectible Accounts $43,500 Cr
Accounts Receivable Written Off $ 24,900
Estimated Bad debts = 1.30% of $5,200,000 = $ 67,600
1) The bad debts expense for 2021 as a percent of net credit sales is $ 67,600.
<h2><u>2. All. for Uncollectibles </u></h2><h3><u>Debt Credit
</u></h3>
Beg Bal; $ 49,000
Bad debts 67,600
A/R written Off
$24,900
<u> Balance $ 43,500
</u>
2) Accounts Receivable Written Off $ 24,900.
This is found by using a T - account for Allowance for uncollectibles. As the beginning and ending balances of Allowance for uncollectibles are credit balances, they would go on the credit side and bad debts expense and Account Receivable written off on the debit side as they are the expenses.
3)If direct method is used the amount of bad debts expense during the year 2021 would be $ 67,600
