Reference no: EM132035490
Problem - Information related to Mingenback Company for 2014 is summarized below.
Total credit sales $2,563,000
Accounts receivable at December 31 907,000
Bad debts written off 32,800
(a) What amount of bad debt expense will Mingenback Company report if it uses the direct write-off method of accounting for bad debts?
(b) Assume that Mingenback Company estimates its bad debt expense to be 2% of credit sales. What amount of bad debt expense will Mingenback record if it has an Allowance for Doubtful Accounts credit balance of $4,500?
(c) Assume that Mingenback Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Mingenback record if it has an Allowance for Doubtful Accounts credit balance of $3,500?
(d) Assume that Mingenback Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Mingenback record if it has an Allowance for Doubtful Accounts debit balance of $3,500?