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QUESTION
Alpha Company used the percentage of sales method, with an historical rate of 2.5% for determining their bad debt expense.
Alpha Company used the percentage of sales method, with an historical rate of 2.5% for determining their bad debt expense. During 2016, sales were $1,500,000, and the January 1 Allowance for Doubtful Accounts had a normal balance of $25,000. $18,600 of accounts were written off during the year. What are the year end dollar amounts for:
- Charged to the Bad Debt Expense account
- Balance for Allowance for Doubtful Accounts
