Aspen Corporation
Data for Aspen Corporation for the year ended December 31, 2012, are presented below.

- Refer to the information provided for Aspen Corporation. If Aspen estimates its bad debts at 4% of net credit sales, what amount will be reported as bad debt expense for 2012?

Question

Aspen Corporation 
Data for Aspen Corporation for the year ended December 31, 2012, are presented below.

- Refer to the information provided for Aspen Corporation. If Aspen estimates its bad debts at 4% of net credit sales, what amount will be reported as bad debt expense for 2012?

Quizplus · Accepted Answer

The bad debt expense is calculated as 4% of net credit sales. If net credit sales are $1,950,000, then 4% of this amount is $78,000.

Aspen Corporation Data for Aspen Corporation for the Year Ended December 31