Answered

Westonci.ca is the premier destination for reliable answers to your questions, brought to you by a community of experts. Discover a wealth of knowledge from experts across different disciplines on our comprehensive Q&A platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

Beautiful Lawns Company estimates its doubtful accounts by aging its accounts receivable and applying percentages to various aged categories of accounts. The Beautiful Lawns Company computes a total of $3,600 in estimated doubtful accounts as of December 31, 2016. Its Accounts Receivable account has a balance of $112,800 and its Allowance for Doubtful Accounts has a credit balance of $600 before adjustment at December 31, 2016. How much bad debts expense will Beautiful Lawns report in 2016

Sagot :

abiolataiwo2015

Answer:

$3,000

Explanation:

Calculation to determine How much bad debts expense will Beautiful Lawns report in 2016

Using this formula

Bad debts expense=Estimated doubtful accounts -Allowance for Doubtful Accounts credit balance

Let plug in the formula

Bad debts expense=$3,600-$600

Bad debts expense=$3,000

Therefore The amount of bad debts expense that Beautiful Lawns will report in 2016 is $3,000

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.