Information related to Blossom Company for 2020 is summarized below.Total credit sales $2,597,000Accounts receivable at December 31 838,000Bad debts written off 34,900 (a) What amount of bad debt expense will Blossom Company report if it uses the direct write-off method of accounting for bad debts?$enter a dollar amount (b) Assume that Blossom Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Blossom record if it has an Allowance for Doubtful Accounts credit balance of $3,500? $enter a dollar amount (c) Assume that Blossom Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Blossom record if it has an Allowance for Doubtful Accounts debit balance of $3,500? $enter a dollar amount Information related to Blossom Company for 2020 is summarized below.Total credit sales$2,597,000Accounts receivable at December 31838,000Bad debts written off34,900(a)What amount of bad debt expense will Blossom Company report if it uses the direct write-off method of accounting for bad de$(b)Assume that Blossom Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt(c)Assume that Blossom Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt

In order to increase the sales revenue, the business entity sold its goods on a credit basis. Out of…

Answered: Information related to Blossom Company…

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 9E: Estimating Bad Debts from Receivables Balances The following information is extracted from Shelton...

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Information related to Blossom Company for 2020 is summarized below.

Total credit sales		$2,597,000
Accounts receivable at December 31		838,000
Bad debts written off		34,900

(a)		What amount of bad debt expense will Blossom Company report if it uses the direct write-off method of accounting for bad debts? $enter a dollar amount

(b)		Assume that Blossom Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Blossom record if it has an Allowance for Doubtful Accounts credit balance of $3,500? $enter a dollar amount

(c)		Assume that Blossom Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Blossom record if it has an Allowance for Doubtful Accounts debit balance of $3,500? $enter a dollar amount