Corporate Finance Assignment/ Professional Essay Writers
Bradford Plumbing had the following data for a recent year:
Credit sales …………………………………………………….$289,000
Allowance for doubtful accounts, 1/1 (a credit balance) ……… 4,120
Accounts receivable, 1/1 ………………………………………. 38,700
Collections on account receivable ……………………………… 291,000
Accounts receivable written off ………………………………… 4,620
Bradford estimates that 2.2 percent of credit sales will eventually default.
Required:
1. Compute bad debt expense for the year.
2. Determine the ending balances in accounts receivable and allowance for doubtful accounts. Get FInance Help Today