11/e, Solutions Manual (For Instructor Use Only) 9-1 PROBLEM 9-2B (a) $22,150. (b) $20,000 ($1,000,000 X 2%). (c) $14,450 [($369,000 X 5%) – $4,000]. (d) $20,450 [($369,000 X 5%) + $2,000]. (e) There are two major weaknesses with the direct write-off method. First, it does not match expenses with the associated revenues. Second, the accounts receivable are not stated at cash realizable value at the balance sheet date. PROBLEM 9-3B (a) Dec. 31 Bad Debt Expense ..........................…
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