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Business, 08.11.2019 02:31 kashbaby

Coronado company has recorded bad debt expense in the past at a rate of 1.5% of accounts receivable, based on an aging analysis. in 2020, coronado decides to increase its estimate to 2%. if the new rate had been used in prior years, cumulative bad debt expense would have been $380,300 instead of $285,225. in 2020, bad debt expense will be $108,400 instead of $81,300. if coronado’s tax rate is 30%, what amount should it report as the cumulative effect of changing the estimated bad debt rate?

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Coronado company has recorded bad debt expense in the past at a rate of 1.5% of accounts receivable,...
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