Since accounts receivable are created by credit sales, uncol…
Since accounts receivable are created by credit sales, uncollectible accounts can be estimated as a percent of credit sales. Estimate bad debt expense based upon the following information: Balance of Accounts Receivable: $40,000 Balance of Allowance for Doubtful Accounts: 1,000 Total sales 100,000 Total credit sales 80% of sales Bad debt as a percent of credit sales 1%
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