Flash Co. uses the allowance method to account for bad debts. At the end of 2010, Flash Co.'s unadjusted trial balance

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 ln the amount of:

$7,100
$7,500
$795,000
$750,000
$7,900


The ____ method of estimating bad debts uses both past and current receivables information to
estimate the allowance amount. Specifically, each receivable is classified by how long it is past its due
date.

percentage of sales
aging of receivable
percentage of receivables



The following financial information is available for Si u Co.
2010 2009
Net Sales 160,000 155,000
Accounts Receivable 38,000 32,000
Compute accounts receivable turnover for 2010. Round your answer to one decimal place.

4.5
4.6
4.8
4.2