The following information is provided: Unadjusted balance in Allowance for Doubtful Accounts $1,100 (debit) Accounts Receivable, December 31 245,500 Sales Returns and Allowances 5,500 Sales 850,000 Sales Discounts 15,000 Required: 1. Prepare the adjusting entry if bad debts are estimated to be 1.5% of net sales. 2. Compute the amount of the adjusting entry if bad debts are estimated to be 3% of ending accounts receivable.

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

bioteacher101

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

answer; rapid growth in buyer demand and high buyer switching cost;