Compute the bad debt expense

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Reference no: EM132849573

Question - Xfit Supplies Inc. sells exercise equipment. Xfit has a bad debt reserve of $750. Xfit determines that at the end of December, it has the following aging schedule of Accounts Receivable. Fill in the highlighted fields and compute the bad debt expense and the net receivables based on the following information for December 31. Also, what would the bad debt reserve look like calculated using the sales method if sales aggregated $150,000 and the expected loss rate was 3.5%? Comment on all applicable issues and the reasons and efficacy of the different approaches and record the applicable journal entries.

Reference no: EM132849573

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