What amount should it report as the cumulative

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1. Jana Kingston Company has recorded bad debt expense in the past at a rate of 11.2% of net sales. In 2004, Kingston decides to increase its estimate to 2%. If the new rate had been used in prior years, cumulative bad debt expense would have been $380,000 instead of $285,000. In 2004, bad debt expense will be $120,000 instead of $90,000. If Kingston's tax rate is 30%, what amount should it report as the cumulative effect of changing the estimated bad debt rate?

Reference no: EM13960662

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