If foster were to use the percentage-of-receivables method for estimating bad debts, a rate, number, or amount in each hundred "the percentage of cesareans at the hospital was three percent higher than the national average.
Correct Answer is d) $548800
Using the percentage of receivable
Accounts receivable $560,000
% of bad debt 2%
Bad debt expense $11,200
Net realizable value ($560000-11200) $548,800
Accounts Receivable
Debit Credit Balance
Beginning Balance $90,000
Credit Sales $600,000 $690,000
sales return and allowances $30,000 $660,000
cash collection $85,000 $575,000
write off $15,000 $560,000
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