Question: As per the information given in the question we have Accounts receivable balance = $ 120,000 Percentage of uncollectible receivables = 4 % Thus the

As per the information given in the question we have

Accounts receivable balance = $ 120,000

Percentage of uncollectible receivables = 4 %

Thus the amount of bad debts to be recognised = Accounts receivable balance * Percentage of uncollectible receivables

= $ 120,000 * 4 %

= $ 4,800

Bad Debt expense to be recognized = $ 4,800

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