ABC. had accounts receivable of $271,500 (including $230,000 due in 1 month, $35,000 due in 3 months,
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ABC. had accounts receivable of $271,500 (including $230,000 due in 1 month, $35,000 due in 3 months, and $6,500 past due) at the end of September 2021. It estimated that uncollectible amounts are expected to be 3% of outstanding accounts receivable due in 1 month, 5% of those due in 3 months, and 30% of those past due.
The allowance for doubtful accounts had a balance of of $6,500 (credit) at the beginning of the month and $600 were written off during the month.
What is the amount of bad debt expense to be recorded at the end of the month?
Related Book For
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina
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