Hahn Company uses the percentage of sales method for recording bad debt expense. For the year, cashsales are RM300,000 and credit sales are RM1,500,000. Management estimates that 1% is the salespercentage to use. What adjusting entry will Hahn Company make to record the bad debt expense?O A. Bad Debt Expense .18,000Allowance for Doubtful Accounts18,000O B. Bad Debt Expense .15,000Allowance for Doubtful Accounts15,000O C. Bad Debt Expense15,000Accounts Receivable .15,000O D. Bad Debt Expense18,000Accounts Receivable18,000

Name: Hahn Company uses the percentage of sales method for recording bad de
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Description: Hahn Company uses the percentage of sales method for recording bad debt expense. For the year, cashsales are RM300,000 and credit sales are RM1,500,000. Management estimates that 1% is the salespercentage to use. What adjusting entry will Hahn Compa

Solution: bad debt expense = total sales * 1% = (300000 + 1500000)*1% = 1800000*1% = 18000

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Hahn Company uses the percentage of sales method for recording bad debt expense. For the yed sales are RM300,000 and credit sales are RM1,500,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debt expens O A. Bad Debt Expense 18,000 Allowance for Doubtful Accounts 18,000

Hahn Company uses the percentage of sales method for recording bad debt expense. For the yed sales are RM300,000 and credit sales are RM1,500,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debt expens O A. Bad Debt Expense 18,000 Allowance for Doubtful Accounts 18,000

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 66E: Bad Debt Expense: Percentage of Credit Sales Method Gilmore Electronics had the following data for a...

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