Question

bad debt expense is deducted from sales revenue to get net sales. true or false?

bad debt expense is deducted from sales revenue to get net sales. true or false?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Bad Debt expense is the expense in which the customer did not pay the amount owed to the company which the was due from the customer on sale of goods or services rendered.

Whereas Net sale is the Gross sales less sales return and allowances and sale discount given to the customer.

Based on the above discussion it can be said the the statement is false. The correct statement will be "Sales return/ allowances and sales discount is deducted from the sales revenue to get the net sales".

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Momrow Inc. uses the percentage of credit sales method to estimate its bad debt expense and...
Momrow Inc. uses the percentage of credit sales method to estimate its bad debt expense and estimates that 5% of credit sales will result in uncollectible accounts. The company had $320,000 of net credit sales during the year, and its Allowance for Doubtful Accounts has an unadjusted credit balance of $6,300. After making the adjusting entry for to record bad debt expense, what is the ending balance in the Allowance for Doubtful Accounts account? Multiple Choice $12,600. $9,700. $16,000. $22,300.
Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is...
Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2018, net credit sales totaled $6,400,000, and the estimated bad debt percentage is 1.40%. The allowance for uncollectible accounts had a credit balance of $61,000 at the beginning of 2018 and $49,500, after adjusting entries, at the end of 2018. Required: 1. What is bad debt expense for 2018 as a percent of net credit sales?...
Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is...
Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2018, net credit sales totaled $6,500,000, and the estimated bad debt percentage is 1.50%. The allowance for uncollectible accounts had a credit balance of $62,000 at the beginning of 2018 and $50,000, after adjusting entries, at the end of 2018. Required: 1. What is bad debt expense for 2018 as a percent of net credit sales?...
Crane Company uses the percentage of sales method for recording bad debts expense. For the year,...
Crane Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $590000 and credit sales are $2600000. Management estimates that 3% is the sales percentage to use. What adjusting entry will Crane Company make to record the bad debts expense? Bad Debt Expense 78000     Accounts Receivable 78000 Bad Debt Expense 17700     Accounts Receivable 17700 Bad Debt Expense 17700    Allowance for Doubtful Accounts 17700 Bad Debt Expense 78000     Allowance for Doubtful Accounts 78000
describe the process followed when estimating bad debt expense under the percentage of sales method.
describe the process followed when estimating bad debt expense under the percentage of sales method.
Discuss the Bad Debt Expense? Why is this an important expense account for the rules of...
Discuss the Bad Debt Expense? Why is this an important expense account for the rules of Accrual Base Accounting?
DR ($) CR ($) Accounts Receivable $80,000 Allowance for Doubtful Accounts (AFDA) 1,750 Net Sales Revenue...
DR ($) CR ($) Accounts Receivable $80,000 Allowance for Doubtful Accounts (AFDA) 1,750 Net Sales Revenue 600,000 Note: Cash sales for the period were $20,000. Required: Prepare the necessary journal entries to record Bad Debt Expense assuming it is estimated at: i) 1% of net sales ii) 4% of gross Accounts Receivable iii) 5% of net Accounts Receivable when the AFDA has a $1,700 credit balance
Make an income statement with the following: Sales Revenue Net Income    Net Income from continuing...
Make an income statement with the following: Sales Revenue Net Income    Net Income from continuing operations Cost of Goods Sold Gain/Loss on sale of assets Gross Profit Gain/Loss from discontinued operations, net of tax Interest Revenue Dividend Revenue selling, general, and administrative expenses Operating Income Interest Expense Income before taxes Income tax expense
Brief Exercise 8-6 Farr Co. elects to use the percentage-of-sales basis in 2017 to record bad...
Brief Exercise 8-6 Farr Co. elects to use the percentage-of-sales basis in 2017 to record bad debt expense. It estimates that 4% of net credit sales will become uncollectible. Sales revenues are $801,000 for 2017, sales returns and allowances are $45,800, and the allowance for doubtful accounts has a credit balance of $9,000. Prepare the adjusting entry to record bad debt expense in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) list of...
If Apple Co uses the percentage-of-sales method to estimate bad debt expenses and it estimates that...
If Apple Co uses the percentage-of-sales method to estimate bad debt expenses and it estimates that 1.5% of credit sales will be uncollectible, what will be the adjusting journal entry to record bad debt expense on December 31, 2019?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT