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 12 Aug 2017 My Price 4.00

Vandross Company

Vandross Company has recorded bad debt expense in the pat at a rate of 1.5% of net sales. in 2014, Vandross decides to increase its estimate to 2%. If the new rate had been used in prior years, cumulative bad debt expense would have been $400,580 instead of $296,250. In 2014, bad debt expense will be $140,180 instead of $92,220. If Vandross's tax rate is 25%, what amount should it report as the cumulative effect of changing the estimated bad debt rate?

 

 

Please show how to work this problem.

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Aug 2017 01:08 PM My Price 4.00

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