Bad Debt Expense Calculator
Bad Debt Expense Calculator
Component | Description |
---|---|
Total Credit Sales | The total value of sales made on credit. |
Estimated Bad Debt Percentage | The estimated percentage of credit sales that will become bad debts. |
Bad Debt Expense | The estimated amount of credit sales that will not be collected. |
Formula | Bad Debt Expense = Total Credit Sales × Estimated Bad Debt Percentage |
Purpose | Used to estimate the amount of uncollectible accounts receivable. |