# Kaplan

posted by .

How do I find the bad debt expense percent when all the info I have is sales, credit sales, collections on accounts receivable, and receivable written off?

• Kaplan -

Isn't bad debt expense the same as receivables written off? (You might add "collection costs" to that to get bad debt expense). To express bad debt as a percentage, I would divide it by credit sales. The debt writeoffs and credit sales should be for the same or comparable periods of time.

Some banks and investment brokers are having a big problem with this kind of accounting question now, as tens of billions of dollars in bad debts are being written off.

## Similar Questions

1. ### Accounting 100 Receivables

During October, German Imports had sales of \$180,000, which included \$120,000 in credit sales. October collections were \$90,000. Other data include September 30 debit balance in Accounts Receivable 28,000. September 30 credit balance …
2. ### accounting

Anzlyzing financial statement effects of accounting for bad debits using the allownace method. Duffy Bros. uses the allowance method to account for bad debets expense. Duffy experienced the following four events in 2008: 1.Recognition …
3. ### college-Finance

any help? thank you Diazstar corporation sells on terms of 2/10, n/30. 70% of costumers normally avail of the discounts. annual sales are \$900,000. 80% of which is made on credit. Cost is approximately 75% of sales. required: 1. average
4. ### fin220

Collins Office Supplies is considering a more liberal credit policy in order to increase sales The following data is available for the company: Uncollectable new accounts 7% Collection costs 6% of new sales Production and selling costs …

How do i calculate this problem. In 2007 the Pearl Boutique had net credit sales of \$750,000. On January 1, 2007, Allowance for Doubtful Accounts had a credit balance of \$16,000. During 2007, \$30,000 of uncollectible accounts receivable …
6. ### math

Information related to Hermesch Company for 2011 is summarized below. Total credit sales \$2,200,000 Accounts receivable at December 31 825,000 Bad debts written off 33,000 What amount of bad debts expense will Hermesch Company report …
7. ### ACC

Smithson Corporation had a 1/1/10 balance in the Allowance for Doubtful Accounts of \$10,000. During 2010, it wrote off \$7,200 of accounts and collected \$2,100 on accounts previously written off. The balance in Accounts Receivable was …
8. ### Accounting

Hankco accepts all major bank credit cards, including Omni Bank's, which assesses a 3% charge on sales for using its card. On June 28, Hankco had \$4,500 in Omni Card credit sales. What entry should Hankco make on June 28 to record …
9. ### Principles of Accounting

Secret Trails received payment in full within the credit period for horse boarding for \$900 plus 6% sales tax. terms of the sale were 2/10, n/30. which entry is required to record this payment?
10. ### Accounting

Ultra Leather Products sells leather clothing at both wholesale and retail. The company has found that there is a higher rate of uncollectible accounts from retail credit sales than from wholesale credit sales. Ultra computes its estimated …

More Similar Questions