Hello, I need help with the following question(s): Exam 3 xC Chegg Study Guided

Question

Hello, I need help with the following question(s):

Exam 3 xC Chegg Study Guided Sol X ? ? ??Secure l https://newconnect.mheducation.com/flow/connect.html Exam 3 Saved Help Save & Exit Submit 7 MC Qu. 104 A company uses... A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: pcinis Accounts receivable Allowance for uncollectible accounts Net Sales 363 ,00e debit 580 debit 308,000 credit :5326 All sales are made on credit. Based on past experience, the company estimates that 0 6% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the ye-end adjusting entry is prepared? Multiple Choice $4.268 Mc Graw KPrex7 of 23 ext > 802 PM O Type here to search R ^ 41)) 7/24/2018

Explanation / Answer

7) Bad debt expense = 808000*.60% = 4848

So answer is e) $4848

8) Journal entry :

So answer is c) Debit notes receivable $10000; Credit Sales $10000

9) Bad debt expense = 860000*.40% = 34440

So answer is d) $3440

Date account and explanation debit credit Notes receivable 10000 Sales 10000

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