On 12/31/2019, Comfy Homes customers collectively owed the company $250,000, but the company reported net accounts receivable
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On 12/31/2019, Comfy Home’s customers collectively owed the company $250,000, but the company reported net accounts receivable on its balance sheet of $245,000. During 2020, Comfy Home wrote off $10,000 of its accounts receivable. On 12/31/2020, Comfy Home’s customers collectively owed the company $200,000, and the company estimated that 4% of its receivables would ultimately be uncollectible.
What amount of bad debt expense should the company record for the year 2020?
Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
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