Question
Financial information for CNG Inc. follows:
|
|
2009 |
2008 |
2007 |
|
Credit sales |
$ 205,000 |
$ 200,000 |
$ 180,000 |
|
Actual bad debt write-offs |
11,000 |
10,000 |
6,000 |
The company estimate bad debt for financial reporting purposesat 3 percent of credit sales. The balance in Allowance for DoubtfulAccounts as of January 1, 2007, was $10,000.
Compute the balance in Allowance for Doubtful Accounts as ofDecember 31, 2009 and comment on the sufficiency of the bad debtexpense and allowance over the three-year period. How did you cometo your conclusion?
Place New Order
It's Free, Fast & Safe
"Looking for a Similar Assignment? Order now and Get a Discount!
