Reference no: EM132404014

Question

At the end of the fiscal 2015 year, Alpha Company has the following information:Credit Sales, $2,500,000;Sales Returns and Allowances, $25,000;Accounts Receivable, $200,000; and Allowance for Doubtful Accounts with a Debit of $1,500.

a. If Alpha uses 0.5% of Net Credit Sales as the basis for determining Bad-Debt Expense. What amounts should Alpha Company report at December 31, 2016 for

1. Balance in Allowance for Doubtful Accounts ---------------

2. Bad Debt Expense ---------------

If Alpha uses 5% of Accounts Receivable as the basis for determining Bad-Debt Expense. What amounts should Alpha Company report at December 31, 2016 for

3. Balance in Allowance for Doubtful Accounts -----------------

4. Bad Debt Expense ----------------