Determine the bad debt expense

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.

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

Reference no: EM131214328

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