Solution-What amount of doubtful debts expense will dejong

What amount of doubtful debts expense will dejong company

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Reference no: EM132984990

Information related to DeLong Company for 2016 is summarised below.

Total credit sales $1,640,000

Accounts receivable as at 30 June 620,000

Doubtful debts written off 26,000

Problem a) What amount of doubtful debts expense will DeJong Company report if it uses the direct write-off method of accounting for doubtful debts?

Problem b) Assume that DeJong Company decides to estimate its doubtful debts expense to be 2% of credit sales. What amount of doubtful debts expense will DeJong record if Allowance for doubtful debts has a credit balance of $3,000?

Problem c) Assume that DeJong Company decides to estimate its doubtful debts expense based on 5% of accounts receivable. What amount of doubtful debts expense will DeJong Company record if Allowance for doubtful debts has a credit balance of $4,000?

Problem d) Assume the same facts as in (c), except that there is a $2,000 debit balance in Allowance for doubtful debts. What amount of doubtful debts expense will DeJong record?

Reference no: EM132984990

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What amount of doubtful debts expense will dejong company

Reference no: EM132984990

Reference no: EM132984990

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