Beatrice Equipment
Beatrice Equipment sells merchandise only on credit.For the year ended December 31,2017,the following data are available:
$\begin{array}{lr}
\text { Sales } & \$ 2,400,000 \
\text { Sales returns and allowances } & 60,000 \
\text { Accounts Receivable-January 1, 2017 } & 270,000 \
\text { Allowance for doubtful accounts-January 1, 2017 } & 25,600 \
\text { Collections during 2017 } & 2,426,300 \
\text { Accounts written off as uncollectible during 2017 } & 23,700
\end{array}$
-Refer to the data for Beatrice Equipment.
Assume that Beatrice Equipment estimates bad debts at 1% of net credit sales.
A) What amount will Beatrice Equipment record as bad debts expense for 2017 ?

Question

Beatrice Equipment
Beatrice Equipment sells merchandise only on credit.For the year ended December 31,2017,the following data are available:
 $\begin{array}{lr}
\text { Sales } & \$ 2,400,000 \
\text { Sales returns and allowances } & 60,000 \
\text { Accounts Receivable-January 1, 2017 } & 270,000 \
\text { Allowance for doubtful accounts-January 1, 2017 } & 25,600 \
\text { Collections during 2017 } & 2,426,300 \
\text { Accounts written off as uncollectible during 2017 } & 23,700
\end{array}$
-Refer to the data for Beatrice Equipment.
Assume that Beatrice Equipment estimates bad debts at 1% of net credit sales.
 A) What amount will Beatrice Equipment record as bad debts expense for 2017 ?

Quizplus · Accepted Answer

The Answer of Beatrice Equipment
Beatrice Equipment sells merchandise only on credit.For the year ended December 31,2017,the following data are available:
 $\begin{array}{lr}
\text { Sales } & \$ 2,400,000 \
\text { Sales returns and allowances } & 60,000 \
\text { Accounts Receivable-January 1, 2017 } & 270,000 \
\text { Allowance for doubtful accounts-January 1, 2017 } & 25,600 \
\text { Collections during 2017 } & 2,426,300 \
\text { Accounts written off as uncollectible during 2017 } & 23,700
\end{array}$
-Refer to the data for Beatrice Equipment.
Assume that Beatrice Equipment estimates bad debts at 1% of net credit sales.
 A) What amount will Beatrice Equipment record as bad debts expense for 2017 ?

Beatrice Equipment Beatrice Equipment Sells Merchandise Only on Credit -Refer to the Data for Beatrice Equipment

Beatrice Equipment
Beatrice Equipment Sells Merchandise Only on Credit -Refer to the Data for Beatrice Equipment