Flash co. uses the allowance method to account for bad debts. at the end of 2010, flash co.'s unadjusted trial balance shows an accounts receivable balance of $45,000; allowance for doubtful accounts balance of $400 (debit); and sales of $1,500,000. based on history, flash estimates that bad debts will be 0.5% of sales. the entry to record estimated bad debts will include an debit to bad debts expense in the amount of:

$7,500

Explanation:

Data given in the question

Balance of the account receivable = $45,000

Allowance for doubtful account balance = $400 debit

Sales = $1,500,000

Estimated percentage is 0.5% of sales

So, the estimated bad debt expense is

= Sales revenue × estimated percentage

= $1,500,000 × 0.5%

= $7,500

The journal entry is as follows

Bad debt expense A/c Dr  $7,500

  To Allowance for doubtful debts  $7,500

(Being bad debt expense is recorded)

answer; (b) insider trading;

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!