Calculationa of Bad Debt Expense

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• Allowance for bad debt expense

  236221 Allowance for bad debt expense Monro Inc. uses the accrual method of accounting for tax purposes. Here is a reconciliation of Monro's allowance for bad debts for the current year.

• Accounting for Bad Debts issue

  Bad debt expense Debit Credit 23,900 b.

• Johnson Company uses the allowance method to account for unc

  Bad debit expense is established as a percentage of credit sales. For 2011, net credit sales totaled $4,500,000, and the estimated bad debt percentage s 1.5%.

• Emily Dickinson Corporation - Bad Debt

  (a) Do you agree or disagree with Dickinson's policy concerning recognition of bad debt expense? Why or why not? (b) By what amount would net income differ if bad debt expense was computed using the percentage-of-sales approach?

• Aaliyah Company Adjusting Entries for Bad Debt Expense

  Under this scenario, the bad debt expense is computed as 2 percent of credit sales and the balance in the Allowance for Doubtful accounts is the beginning balance plus the bad debt expense.

• Estimating Bad Debt Expense

  Accounts receivable $130,000 Net Credit Sales $840,000 Allowance for doubtful accounts $3,000 debit balance Aging of accounts receivable $19,000 Gilkey uses the aging method of estimating bad debt expense.

• Accounts receivable and bad debt journal entries

  For percent of sales, the debit to bad debt expense is computed by some % x sales. For the percent of receivables method, the target ending balance in the allowance is computed using % x AR.

• Bad Debt and Uncollectible Accounts

  Based on percent of credit sales 1. Bad debt expense is directly calculated based on the percent of credit sales. Total credit sales = 1,500,000. Percentage = 2% Bad debt expense = 1,500,000 X 2% = $30,000 2.

• Allowance for Doubtful Debts for Holland Company (Hermesch Company)

  The bad debt expense reported would be 38,000. (b) Assume that Holland Company estimates its bad debts expense to be 3% of credit sales.