What amount should it report as the cumulative


Vandross Company has recorded bad debt expense in the pat at a rate of 1.5% of net sales. in 2014, Vandross decides to increase its estimate to 2%. If the new rate had been used in prior years, cumulative bad debt expense would have been $400,580 instead of $296,250. In 2014, bad debt expense will be $140,180 instead of $92,220. If Vandross's tax rate is 25%, what amount should it report as the cumulative effect of changing the estimated bad debt rate?

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Accounting Basics: What amount should it report as the cumulative
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