Aardvark Resale
This company sells merchandise only on credit.For the year ended December 31,2012,the following data are available:
$\begin{array}{ll}
\text { Sales } & \$ 1,200,000 \
\text { Sales returns and allowances } & 50,000 \
\text { Account Receivable-J anuary 1, 2012 } & 225,000 \
\text { Allowance for doubtful accounts-Januayy } 1,2012 & 15,000 \
\text { Collections during 2012 } & 1,050,000 \
\text { Accountswritten off as uncollected during } 2012 & 10,000
\end{array}$
-Refer to Aardvark Resale.Assume that the company estimates bad debts at 2% of net credit sales.
A) What amount will the company record as bad debts expense for 2012 ?

Question

Aardvark Resale
This company sells merchandise only on credit.For the year ended December 31,2012,the following data are available:
 $\begin{array}{ll}
\text { Sales } & \$ 1,200,000 \
\text { Sales returns and allowances } & 50,000 \
\text { Account Receivable-J anuary 1, 2012 } & 225,000 \
\text { Allowance for doubtful accounts-Januayy } 1,2012 & 15,000 \
\text { Collections during 2012 } & 1,050,000 \
\text { Accountswritten off as uncollected during } 2012 & 10,000
\end{array}$ 
-Refer to Aardvark Resale.Assume that the company estimates bad debts at 2% of net credit sales.
 A) What amount will the company record as bad debts expense for 2012 ?

Quizplus · Accepted Answer

The Answer of Aardvark Resale
This company sells merchandise only on credit.For the year ended December 31,2012,the following data are available:
 $\begin{array}{ll}
\text { Sales } & \$ 1,200,000 \
\text { Sales returns and allowances } & 50,000 \
\text { Account Receivable-J anuary 1, 2012 } & 225,000 \
\text { Allowance for doubtful accounts-Januayy } 1,2012 & 15,000 \
\text { Collections during 2012 } & 1,050,000 \
\text { Accountswritten off as uncollected during } 2012 & 10,000
\end{array}$ 
-Refer to Aardvark Resale.Assume that the company estimates bad debts at 2% of net credit sales.
 A) What amount will the company record as bad debts expense for 2012 ?

Aardvark Resale This Company Sells Merchandise Only on Credit -Refer to Aardvark Resale

Aardvark Resale
This Company Sells Merchandise Only on Credit -Refer to Aardvark Resale