Question

Wasco Company has experienced bad debt losses of 5% of credit sales in prior periods. At the end of the year, the balance of Accounts Receivable is $105,000 and the Allowance for Doubtful Accounts has an unadjusted credit balance of $750. Net credit sales during the year were $160,000. Using the percentage of credit sales method, what is the estimated Bad Debt Expense for the year

Answer 1

I have no idea if that’s a statement or a question sry.

Step-by-step explanation:

Answer 2

$8,000

Step-by-step explanation:

Calculation for the estimated Bad Debt Expense for the year

Using this formula

Estimated Bad Debt Expense = Net credit sales × Bad debt losses

Let plug in the formula

Estimated Bad Debt Expense= $160,000 × 0.05 Estimated Bad Debt Expense= $8,000

Therefore the estimated Bad Debt Expense for the year will be $8,000