Here is information related to Shashko Company for 2012. Total credit sales $1,297,000 Accounts receivable at December 31 648,500 Bad debts written off 42,800

Problem 8-4A

Here is information related to Shashko Company for 2012.

Total credit sales		$1,297,000
Accounts receivable at December 31		648,500
Bad debts written off		42,800

 

(a) What amount of bad debts expense will Shashko Company report if it uses the direct write-off method of accounting for bad debts?

Bad debts expense

$

(b) Assume that Shashko Company decides to estimate its bad debts expense based on 4% of accounts receivable. What amount of bad debts expense will the company record if Allowance for Doubtful Accounts has a credit balance of $3,100?

Bad debts expense

$

(c) Assume the same facts as in part (b), except that there is a $1,000 debit balance in Allowance for Doubtful Accounts. What amount of bad debts expense will Shashko record?

Bad debts expense

$

 

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