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a company uses the percent of sales method to determine its bad debts expense. at the end of the current year, the company's unadjusted trial balance reported the following selected amounts: accounts receivable $ 387,000 debit net sales 920,000 credit all sales are made on credit. based on past experience, the company estimates that 0.6% of net sales are uncollectible. what amount should be debited to bad debts expense when the year-end adjusting entry is prepared? multiple choice $1,599 $2,219 $4,644 $5,520 $5,884

Respuesta :

The amount of bad debt expense that should be debited when the year-end adjusting is $4,900.

A bad debt expense can be described as a portion of accounts receivable that your business use you won't ever collect. A bad debt expense also known as doubtful debts, refers to recorded as a negative transaction on your business's financial statements.

To determine of the bad debt expense we can use the formula that is shown below:

The bad debt expense = Net Credit sales × estimated percentage given  - credit balance of allowance for doubtful debts

The bad debt expense = $920,000 × 0.6%  - $620

The bad debt expense = $5,520 - $620

The bad debt expense = $4,900

Learn more about the bad debts expense at https://brainly.com/question/15312981

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