Aerospace Electronics reports $590,065in credit sales for 2018 and $596,438 in 2019. They have a $460,716 accounts receivable balance at the end of 2018, and $437,471 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 8% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 9% during 2019. Determine the bad debt estimation for 2018. Round to the nearest whole dollar, no decimal places.
Aerospace Electronics reports $590,065in credit sales for 2018 and $596,438 in 2019. They have a $460,716 accounts receivable balance at the end of 2018, and $437,471 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 8% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 9% during 2019. Determine the bad debt estimation for 2018. Round to the nearest whole dollar, no decimal places.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 12EA: Aerospace Electronics reports $567,000 in credit sales for 2018 and $632,500 in 2019. They have a...
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Aerospace Electronics reports $590,065in credit sales for 2018 and $596,438 in 2019. They have a $460,716 accounts receivable balance at the end of 2018, and $437,471 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 8% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 9% during 2019. Determine the bad debt estimation for 2018. Round to the nearest whole dollar, no decimal places.
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