Determine the bad debt expense

Assignment Help Accounting Basics

Reference no: EM131214328

Using Financial Statement Disclosures to Infer Bad Debt Expense The 2009 annual report for Sears Holding Corporation contained the following

Description

Using Financial Statement Disclosures to Infer Bad Debt Expense

The 2009 annual report for Sears Holding Corporation contained the following information (in millions):

A footnote to the financial statements disclosed that accounts receivable write-offs amounted to $13 during 2009 and $3 during 2008. Assume that Sears did not record any recoveries.

Required:

Determine the Bad Debt Expense for 2009 based on the above facts.

Verified Expert

Solution Balance in Allowance Account at 12/31/08 = $37 Less 2009 Write-offs = $13 Pre-Adjustment Balance in Allow

Reference no: EM131214328

Questions Cloud

Discuss about polynomial interpolation : We can say, interpolation is a technique of finding the value of a function inside the given range of arguments. Suppose, we have the values of y =f (x) for set of values of x. We have the data, x (argument): x1, x1, x2…xn and the corresponding value..

Trigonometric substitution : To solve some problems in calculus, we can substitute the trigonometric functions. We can substitute the trigonometric function with the help of trigonometric identities. Evaluate Integration (1 over square root of (a^2 + x^2)) dx.

Properties on inequality-what property is demonstrated : In these properties on inequality, we have some properties. We can discuss the properties here. In addition property, if x

Bids involving two different qualities of surfacing for area : Assume that Wal-Mart Stores, Inc. has decided to surface and maintain for 10 years a vacant lot next to one of its stores to serve as a parking lot for customers. Management is considering the following bids involving two different qualities of surfa..

Determine the bad debt expense : Using Financial Statement Disclosures to Infer Bad Debt Expense The 2009 annual report for Sears Holding Corporation contained the following. Using Financial Statement Disclosures to Infer Bad Debt Expense. Determine the Bad Debt Expense for 2009 bas..

Find the current yield-capital gains yield-total return : BOND VALUATION The Pennington Corporation issued a new series of bonds on January 1, 1990. The bonds were sold at par ($1,000); had a 12% coupon; and mature in 30 years, on December 31, 2019. Find the current yield, capital gains yield, and total ret..

Compute the break-even point in units and sales dollars : A Lorge Corporation has collected the following information after its first year of sales. Sales were $1,500,000 on 100,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct materials $511,000; direct labor $290,000; administrativ..

Contract contains elements of both a service and a good : If a contract contains elements of both a service and a good:

Determine the amount of gross margin-uses absorption costing : During its first year of operation Mazer Manufacturing Company produced 2,000 units of inventory and sold 1,800 units. Mazer incurred variable product cost of $4 per unit and $2,500 of fixed manufacturing overhead costs. The sales price of the produc..

User Account

All Pages