Saint John Industries uses the percentage of credit sales method to estimate Bad Debt Expense. The company reported net credit sales of $540,000 during the year Saint John has experienced bad debt losses of 4% of credit sales in prior periods. At the beginning of the year, Saint John has a credit balance in its Allowance for Doubtful Accounts of $4,400. No write-offs or recoveries were recorded during the year. What amount of Bad Debt Expense should Saint John recognize for the year? a) $21,600.
b) $4,400
c) $17,200

The following cost and inventory data are taken from the accounting records of mason company for the year just completed: costs incurred: direct labor cost $ 90,000 purchases of raw materials $ 134,000 manufacturing overhead $ 205,000 advertising expense $ 45,000 sales salaries $ 101,000 depreciation, office equipment $ 225,000 beginning of the year end of the year inventories: raw materials $ 8,100 $ 10,300 work in process $ 5,900 $ 21,000 finished goods $ 77,000 $ 25,800 required: 1. prepare a schedule of cost of goods manufactured. 2. prepare the cost of goods sold section of mason company’s income statement for the year.