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P9-2A (a-d)

Information related to Hermesch Company for 2008 is summarizedbelow.
Total credit sales $2,200,000
Accounts receivable at December 31 825,000
Bad debts written off 33,000






Correct.

What amount of bad debts expense will Hermesch Company report if ituses the direct writeoff method of accounting for bad debts?
$ 33000










Correct.

Assume that Hermesch Company estimates its bad debts expense to be2% of credit sales. What amount of bad debts expense will Hermeschrecord if it has an Allowance for Doubtful Accounts credit balanceof $4,000?
$ 44000










Incorrect.

Assume that Hermesch Company estimates its bad debts expense basedon 6% of accounts receivable. What amount of bad debts expense willHermesch record if it has an Allowance for Doubtful Accounts creditbalance of $3,000?
$







Incorrect.

Assume that Hermesch Company estimates its bad debts expense basedon 6% of accounts receivable. There is a $3,000 debit balance inAllowance for Doubtful Accounts. What amount of bad debts expensewill Hermesch record?
$





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Jamar Ferry
Jamar FerryLv2
28 Sep 2019

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