Reference no: EM132797402

Coffee Co. estimates that 2% of its net credit sales will become uncollectible. Relevant information follows:

1. allowance for doubtful accounts, Jan. 1 17,600
2. write offs 11,000
3. recoveries 2,200
4. sales (including cash sales of 220,000) 1,320,000
5. sales returns and discounts (including 2,200 sales return on cash sales) 13,200
6. accounts receivable, Dec. 31 330,000

Problem 1: Compute for the following:

a. bad debt expense

b. allowance for bad debts on Dec. 31

c. carrying amount of accounts receivable on Dec. 3