At year-end (December 31), Terner Company estimates its bad debts as .70% of its

Question

At year-end (December 31), Terner Company estimates its bad debts as .70% of its annual credit sales of $688,000. Terner records its Bad Debts Expense for that estimate. On the following February 1, Terner decides that the $344 account of D. Fidel is uncollectible and writes it off as a bad debt. On June 5, Fidel unexpectedly pays the amount previously written off.

I did 688,000*70% =481600 for b ad debt expense and the connect site keeps saying it is wrong. How do I compute the bad debt expense?

Explanation / Answer

The total amount is actually 4816. its .70% and not .70. That is a mistake. Try this and sometimes answers are inclusive of the amount written off and sometimes not written off. You will have to see which the computer wants

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