Perfect Technologies has estimated bad debts using the percentage-of-sales method since their business began operations in 2008. Information relating to bad debts and sales is as follows:

At the beginning of 2011, Perfect proposes changing their estimation of bad debt expense from 3 percent of sales to 2 percent. Sales for the year totaled $163,000 and actual bad debts amounted to $3,720.

Question

Perfect Technologies has estimated bad debts using the percentage-of-sales method since their business began operations in 2008. Information relating to bad debts and sales is as follows:
  
At the beginning of 2011, Perfect proposes changing their estimation of bad debt expense from 3 percent of sales to 2 percent. Sales for the year totaled $163,000 and actual bad debts amounted to $3,720.

Quizplus · Accepted Answer

The Answer of Perfect Technologies has estimated bad debts using the percentage-of-sales method since their business began operations in 2008. Information relating to bad debts and sales is as follows:
  
At the beginning of 2011, Perfect proposes changing their estimation of bad debt expense from 3 percent of sales to 2 percent. Sales for the year totaled $163,000 and actual bad debts amounted to $3,720.

Perfect Technologies Has Estimated Bad Debts Using the Percentage-Of-Sales Method