. Nuance Company had net credit sales for the year of $500,000. Nuance estimates that 2 percent of its net credit sales will never be collected.
. Prepare the entry to record Nuance’s bad debt expense for the year.
Nuance had accounts receivable of $100,000 at the end of the year.
Show how the net accounts receivable balance would be reported on the balance sheet.
Assume that the allowance for doubtful accounts had a beginning balance of zero.
Why is A/R shown at net rather than just showing the full amount?