Corporate Finance Assignment/ Professional Essay Writers
The following information (prior to adjustment) is available from the accounting records of the Bradford Company on December 31, 2007:
Cash sales â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦. $ 93,100
Net credit sales â€¦â€¦â€¦â€¦â€¦â€¦â€¦.262,900
Total sales (net) â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.$356,000
Accounts receivable â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.. 126,300
Allowance for doubtful accounts â€¦â€¦â€¦â€¦â€¦â€¦.. 2,150 (credit)
Prepare journal entries to record the estimate of Bradfordâ€™s bad debt expense for 2007 assuming:
1. Bad debts are estimated to be 1.5% of total sales (net).
2. Bad debts are estimated to be 2% of net credit sales.
3. Bad debts are estimated to be 5% of gross accounts receivable. Get FInance Help Today