Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 29 Jul 2017 My Price 4.00

Jana Kingston Company

Jana Kingston Company has recorded bad debt expense in the past at a rate of 11/2% of net sales. In 2008, Kingston decides to increase its estimate to 2%. If the new rate had been used in prior years, cumulative bad debt expense would have been $380,000 instead of $285,000. In 2008, bad debt expense will be $120,000 instead of $90,000. If Kingston’s tax rate is 30%, what amount should it report as the cumulative effect of changing the estimated bad debt rate?

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Maurice Tutor
(5)
Status NEW Posted 29 Jul 2017 06:07 PM My Price 4.00

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