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Information related to Bramble Company for 2020 is summarized below.
Total credit sales $2.572,000
Accounts receivable at December 31 829,000
Bad debts written off 32,300
Problem 1: What amount of bad debt expense will Bramble Company report if it uses the direct write-off method of accounting for bad debts?
Problem 2: Assume that Bramble Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Bramble record if it has an Allowance for Doubtful Accounts credit balance of $3,300?
Problem 3: Assume that Bramble Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Bramble record if it has an Allowance for Doubtful Accounts debit balance of $3,300?
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