Uncategorized

Flash Co. uses the allowance method to account for bad debts. At the end of the year, Flash Co.’s unadjusted

Flash Co. uses the allowance method to account for bad debts. At the end of the year, Flash Co.’s unadjusted trial balance shows an accounts receivable balance of $45,000; allowance for doubtful accounts balance of $400 (debit and sales of $1,500,000. Based on history, Flash estimates that bad debts will be 0.5% of sales. The entry to record estimated bad debts will include an debit to Bad Debts Expense in the amount of: Multiple choice question. $750,000 $795,000 $7,900 $7,100 $7,500

Leave a Reply

Your email address will not be published.