San Mateo Company had the following account balances at December 31,2016,before recording bad debt expense for the year:
San Mateo is considering the following approaches for estimating bad debts for 2016:
$\bullet$ Based on 3% of credit sales
$\bullet$ Based on 6% of year-end accounts receivable
What amount should San Mateo charge to bad debt expense at the end of 2016 under each method?

Question

San Mateo Company had the following account balances at December 31,2016,before recording bad debt expense for the year: 
San Mateo is considering the following approaches for estimating bad debts for 2016:
$\bullet$ Based on 3% of credit sales
$\bullet$ Based on 6% of year-end accounts receivable
What amount should San Mateo charge to bad debt expense at the end of 2016 under each method?

Quizplus · Accepted Answer

The Answer of San Mateo Company had the following account balances at December 31,2016,before recording bad debt expense for the year: 
San Mateo is considering the following approaches for estimating bad debts for 2016:
$\bullet$ Based on 3% of credit sales
$\bullet$ Based on 6% of year-end accounts receivable
What amount should San Mateo charge to bad debt expense at the end of 2016 under each method?

San Mateo Company Had the Following Account Balances at December ∙\bullet∙

San Mateo Company Had the Following Account Balances at December $\bullet$