Express Company has beginning

Express Company has beginning inventory on Jan 1st of 150 units at a cost of $20 per unit. During the year, the

following transactions were made:

March 14th –

400 units purchased at $23 per unit

July 20th –

250 units purchased at $24 per unit

Aug 1st –

600 units were sold

Sept 4th –

350 units purchased at $26 per unit

Oct 1st –

450 units were sold

Dec 2nd –

100 units purchased at $29 per unit

Show the total of Cost of Goods Sold and Ending Inventory

Percentage-of-Sales Method

Percentage-of-Receivables Method

Aging of Receivables Method

Based on the following information calculate the bad debt expense and show the journal entry. Using a T-account,

show the balance in the Allowance for Bad Debts.

Net Credit Sales $800,000

Balance in Allowance Account – CR of $200 (before adjusting entry)

Balance in Accounts Receivable – DR of $8,000

1) If the company uses the Percentage-of-Sales Method, it estimates bad debt expense to be 1%

2) If the company uses Percentage-of-Sales Receivables, it estimates bad debt to be 4%

3) If the company uses Aging-of-Receivables Method, it estimates bad debt at the following:

Customer Name

# day past due

Amount Due

1-30 days



20 days


31-50 days



120 days


61-90 days



40 days


Over 90 days



68 days


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