x Students-myLiMassDx Quiz , Chapters 5 and 6 ?erto. m.tpx connect ACCOUNTING Qu

Question

x Students-myLiMassDx Quiz , Chapters 5 and 6 ?erto. m.tpx connect ACCOUNTING Quiz- Chapters 5 and 6 Question 8 (of 20) 8. Company has provided you with the following information before any year-end adjustments Net credit sales are $121,500. Historical percentage of credit losses is 2%. Allowance for doubtful accounts has a credit balance of $600 Accounts receivables ending balance is $50000. What is the estimated bad debt expense using the percentage of credit sales method? $1,000. O $1.830 $3,030. O $2.430. MacBook

Explanation / Answer

Calculate bad debt expense :

Bad debt expense = 121500*2% = 2430

so answer is d) $2430

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