How to calculate provision for doubtful debts at an existing rate?
Answers
Answered by
0

If a company has $100,000 inaccounts receivable at the end of an accounting period and company records indicate that, on average, 5% of total accounts receivable become uncollectible, the allowance for bad debts account must be adjusted to have a credit balance of $5,000 (5% of $100,000).
If a company has $100,000 inaccounts receivable at the end of an accounting period and company records indicate that, on average, 5% of total accounts receivable become uncollectible, the allowance for bad debts account must be adjusted to have a credit balance of $5,000 (5% of $100,000).
Similar questions