Here is information related to Pharoah Company for 2022. Total credit sales $1,590,000 Accounts receivable at December 31 839,000 Uncollectibles written off 34,700 (a) What amount of bad debt expense...


Here is information related to Pharoah Company for 2022.<br>Total credit sales<br>$1,590,000<br>Accounts receivable at December 31<br>839,000<br>Uncollectibles written off<br>34,700<br>(a) What amount of bad debt expense will Pharoah Company report if it uses the direct write-off method of accounting for<br>uncollectibles?<br>Bad debt Expense $<br>(b) Assume that Pharoah Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 5% of<br>accounts receivable will become uncollectible. What amount of bad debt expense will the company record if Allowance for Doubtful<br>Accounts has a credit balance of $2,800?<br>Bad debt Expense $<br>(c) Assume that Pharoah Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 5% of<br>accounts receivable will become uncollectible. What amount of bad debt expense will the company record if Allowance for Doubtful<br>Accounts has a debit balance of $1,200?<br>Bad debt Expense $<br>

Extracted text: Here is information related to Pharoah Company for 2022. Total credit sales $1,590,000 Accounts receivable at December 31 839,000 Uncollectibles written off 34,700 (a) What amount of bad debt expense will Pharoah Company report if it uses the direct write-off method of accounting for uncollectibles? Bad debt Expense $ (b) Assume that Pharoah Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 5% of accounts receivable will become uncollectible. What amount of bad debt expense will the company record if Allowance for Doubtful Accounts has a credit balance of $2,800? Bad debt Expense $ (c) Assume that Pharoah Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 5% of accounts receivable will become uncollectible. What amount of bad debt expense will the company record if Allowance for Doubtful Accounts has a debit balance of $1,200? Bad debt Expense $

Jun 11, 2022
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