ignment 05:59 PM/ Remaining: 139 min CALOJLATOR FULL SCREEN PRINTER VERSION BACK

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ignment 05:59 PM/ Remaining: 139 min CALOJLATOR FULL SCREEN PRINTER VERSION BACK! NEXT Question 1 Here is information related to Tamarisk, Inc. for 2017. Total credit sales Accounts receivable at December 31 Bad debts written off $1,473,000 736,500 39,200 (a) what amount of bad debt expense will Tamarisk, Inc. report if it uses the direct write- off method of accounting for bad debts? Bad debts expense s (b) Assume that Tamarisk, Inc. decides to estimate its bad debt expense based on 4% of accounts receivable, what amount of bad debt expense will the company record if Allowance for Doubtful Accounts has a credit balance of $2.900? Bad debts expense (c) Assume the same facts as in (b), except that there is a $1.000 debit balance in Allowance for Doubtful Accounts. What amount of bad debt expense will Tamarisk, Inc. record? Bad debts expense Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 2 used SAVE FOR LATER PolisyI 2000-2017 1 ons ic All Righits Reserved A Division of ohn Wiley & Sons I Version 4.24

Explanation / Answer

a) Bad debts expense $39,200 b) Estimated bad debts 736,500*4% 29460 Bad debts expense 26560 answer (29,460-2900) c) Bad debts expense 30,460

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