I'm trying to figure out bad debt expense. I have as given information:
| Current assets: Cash and cash equivalents |
$4,000 |
$3,400 |
| Accounts receivable (net of allowances of $32 and $28, respectively) |
$6,500 |
$5,700 |
| Net sales (in millions) |
$6,020 |
$5,425 |
$5,000 |
| Net income (in millions) |
$300 |
$285 |
$220 |
The selected income statement data is for the year ended December 31. The company also reported bad debt expense of $62,000 in 2012; $55,000 in 2011; and $49,500 in 2010.
How do I figure this out? If i use allowance method then i need to figure out the percentage not sure how to do that or if i have enough information to do that.