Exercise Algo Uncollectible accounts; allowance method estimating bad debts as percentage of
net sales vs direct writeoff method L
Ervin Company uses the allowance method to account for uncollectible accounts receivable. The allowance account is adjusted based
on bad debt expense as a percentage of credit sales. For net credit sales totaled $ and the estimated bad debt
percentage is No previously writtenoff accounts receivable were reinstated during The allowance for uncollectible
accounts had a credit balance of $ at the beginning of and $ after adjusting entries, at the end of
Required:
What is bad debt expense for as a percent of net credit sales?
Assume Ervin makes no other adjustment of bad debt expense during Determine the amount of accounts receivable
written off during
If the company uses the direct writeoff method, what would bad debt expense be for
