Evaluate the following scenarios, assuming both companies use the next credit sales as the basis for estimating bad debts expense:
At year end, Tate Company has accounts receivable of $89,000. The allowance for uncollectible accounts has a balance prior of adjustment of ($750) An aging schedule prepared on December 31 indicates that $2,100 of Tate’s A.R is uncollectible. Net credit sales were $325,000 for the year.
The bad debts expense for the year