1. Calculate the loss rate for each year from 2016 through 2019. Round your answers to three decimal places. Year Loss Rate 2016 2017 2018 2019
1. Calculate the loss rate for each year from 2016 through 2019. Round your answers to three decimal places. Year Loss Rate 2016 2017 2018 2019
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 83APSA: Bad Debt Expense: Percentage of Credit Sales Method The Glass House, a glass and china store, sells...
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Question
The Glass House, a glass and china store, sells nearly half its merchandise on credit. During the past 4 years, the following data were developed for credit sales and losses from uncollectible accounts:
Year of Sales |
Credit Sales |
Losses from Uncollectible Accounts* |
|||||
2016 | $200,000 | 12,700 | |||||
2017 | 203,000 | 13,297 | |||||
2018 | 213,000 | 13,313 | |||||
2019 | 225,000 | 18,563 | |||||
Total | $841,000 | $57,873 |
*Losses from uncollectible accounts are the actual losses related to sales of that year (rather than write-offs of that year).
Required:
1. Calculate the loss rate for each year from 2016 through 2019. Round your answers to three decimal places.
Year | Loss Rate |
2016 | |
2017 | |
2018 | |
2019 |
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