Haven Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $600,000 and credit sales are $2,200,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Haven Company make to record the bad debts expense? a. Bad Debts Expense 28,000
Allowance for Doubtful Accounts 28,000
b. Bad Debts Expense 28,000
Accounts Receivable 28,000
c. Bad Debts Expense 22,000
Allowance for Doubtful Accounts 22,000
d. Bad Debts Expense 22,000
Accounts Receivable 22,000
has the following current assets: cash, $1,200; receivables, $1,500; inventory, $2,000 and other current assets, $1,300. Airline Accessories has the following liabilities: accounts payable, $1,000 million; current portion of long-term debt, $3,000; and long-term debt, $1,800. Based on these amounts, calculate the current ratio and working capital