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Aerospace Electronics reports $570,000 in credit sales for 2018 and $635,500 in 2019. They have a $503,000 accounts receivable balance at the end of 2018, and $605,000 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 6% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 8% during 2019. A. Determine the bad debt estimation for 2018. $fill in the blank 1 B. Determine the bad debt estimation for 2019. $fill in the blank 2

Aerospace Electronics reports $570,000 in credit sales for 2018 and $635,500 in 2019. They have a $503,000 accounts receivable balance at the end of 2018, and $605,000 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 6% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 8% during 2019. A. Determine the bad debt estimation for 2018. $fill in the blank 1 B. Determine the bad debt estimation for 2019. $fill in the blank 2

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 12EA: Aerospace Electronics reports $567,000 in credit sales for 2018 and $632,500 in 2019. They have a...
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Aerospace Electronics reports $570,000 in credit sales for 2018 and $635,500 in 2019. They have a $503,000 accounts receivable balance at the end of 2018, and $605,000 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 6% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 8% during 2019.

A. Determine the bad debt estimation for 2018.

$fill in the blank 1

B. Determine the bad debt estimation for 2019.

$fill in the blank 2

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