An aging of Castle Dale Company's accounts receivable as of December 31 revealed the following: Amount % Uncollectible Current $20,000 2% 1-30 days 50,000 4% 31-60 days 30,000 7% Over 60 days 10,000 25% Before any adjustment for the current year's bad debts, Castle Dale Company has a CREDIT balance in its allowance for bad debts of $3,000; this $3,000 represents the remaining allowance associated with accounts receivable created in prior years. Castle Dale Company uses the aging method of estimating the allowance for bad debts and bad debt expenses. 

What is the BAD DEBT EXPENSE for THIS year?

Answer rating: 100% (QA)

To calculate the bad debt expense for the current year we need to determine the allowance for bad de... View the full answer