Question

Thompson Corporation's unadjusted trial balance includes the following balances (assume normal balances):• Accounts receivable $1,492,000• Allowance for doubtful accounts $ 28,400Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debt expense will the company record?

Answer 1

Answer:

$87.816

Explanation:

First you have to calculate the Oustanding receivables, that you can calculre with the next formula:

Oustanding receivables= Accounts recivable-  Allowance for doubtful accounts

Oustanding receivables=  1.492.000   -  28.400

Oustanding receivables=  1.463.600  

Now that you have the result have to multiply by the 6% to calculate the bad debt.

Bad debt = 1.463.600* 6%=  $87.816    

its the bad debt of   Thompson Corporation's