Calistoga Produce estimates bad debt expense at ½% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,650, respectively, at December 31, 2017. During 2018, Calistoga's credit sales and collections were $315,000 and $319,000, respectively, and $1,720 in accounts receivable were written off.
- Calistoga's 2018 bad debt expense is:

Question

Quizplus · Accepted Answer

$\begin{array}{llr}
\text { Credit sales } & \$ 315,000 \
& \times  .5 \% \
\text { Expense } &\$ 1,575
\end{array}$

Calistoga Produce Estimates Bad Debt Expense at ½% of Credit