A company has sales of $350,000 and estimates that 0.5% of its sales are uncollectible.The company's reported amount of bad debts expense is $1,750.

Question

Quizplus · Accepted Answer

To find out if the reported amount of bad debts expense is accurate, we can use the estimated percentage of uncollectible sales:

0.5% of $350,000 = $1,750

Since the reported amount of bad debts expense matches this calculation, it is true that the company's reported amount of bad debts expense is $1,750.

A Company Has Sales of $350,000 and Estimates That 0