Help Saw MC Qu. 106 A company uses... A company uses the percent of sales method

Question

Help Saw MC Qu. 106 A company uses... A company uses the percent of sales method to determine its bad debes expense At the end of the current year the company's unadjusted trial balance reported the following selected amounts 359,000 debit 540 debit Allovanee tor uncollectible acoounts set sales 804,000 eredit saies Me made oncreen Based on past experience, the company estmanes 06% of net cred, saies to be uncolecte what a Anngemy shalde, company mke"the end of the current year to necond ts estimated bad debts expense Muliple Choice Debit Bad Debts Expense $24, credit Alowance for Dul Aconts 52 8 3 4

Explanation / Answer

solution: provision to be made= 804000*0.6/100= 4824

Less: already provision 540

Entry to be made 4284

Hence, ans is c

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