bad debt percentage
Percentage method of credit sales?
Belkou Company began operations on 1 January 2007. Sales of its first year were $ 1,170,000, which were 70% credit. During the year 725,000 $ have been collected from customers on the account, and the company wrote off accounts worth $ 2100. At the end of the year, management has estimated that 0.5% of all credit Sales would probably be uncollectible. Now, I already know that the burden of bad debts is 4095. I just wonder how to calculate the allowance for doubtful accounts. See I thought you would catch the radiation in 4095-2100 for 1995, but apparently this is incorrect. This means that the provision for claims Dubious is only 4095? Thank you in advance.
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Rich Woman – Debt
