Acompany uses the percent of sales method to determine its bad debts expense. at the end of the current year, the company's unadjusted trial balance reported the following selected amounts: accounts receivable $ 352,000 debit allowance for uncollectible accounts 630 debit net sales 797,000 credit all sales are made on credit. based on past experience, the company estimates that 0.5% of net credit sales are uncollectible. what amount should be debited to bad debts expense when the year-end adjusting entry is prepared?

$3,355

Explanation:

Accounts receivables = $ 352,000

Debit Allowance for uncollectible accounts = 630

Net Sales = $797,000

The company estimates that 0.5% of net credit sales are uncollectible

Estimates of uncollectible receivables

= 0.5% × $797,000

=$3985

This is the total amount to be recognized at the end of the year as Bad Debts Expense. Since a debit of $630 has been recognized already, additional debit required

= 3985 - 630

= $3,355

The amount to be debited to Bad Debts Expense when the year-end adjusting entry is prepared is $3,355.

the answer is a.

explanation:

hope my answer has you if not i'm sorry.

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