Estimate bad debt expense under percentage of credit sales

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PERCENTAGE OF CREDIT SALES METHOD

At December 31, 2009, Garner has a $1,000 credit balance in its allowance for doubtful accounts. Garner estimates that 1.5 percent of its 2010 credit sales will eventually default. During 2010, Garner had credit sales of $575,000.

Required:

Estimate the bad debt expense under the percentage of credit sales method.

Reference no: EM13943761

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