Question - Information related to Mingenback Company for 2015 is summarized below.
Total credit sales - $2,521,000
Accounts receivable at December - 31 905,000
Bad debts written off - 31,300
(a) What amount of bad debt expense will Mingenback Company report if it uses the direct write-off method of accounting for bad debts?
(b) Assume that Mingenback Company estimates its bad debt expense to be 3% of credit sales. What amount of bad debt expense will Mingenback record if it has an Allowance for Doubtful Accounts credit balance of $4,100?
(c) Assume that Mingenback Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Mingenback record if it has an Allowance for Doubtful Accounts credit balance of $3,000?
(d) Assume that Mingenback Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Mingenback record if it has an Allowance for Doubtful Accounts debit balance of $3,000?