Case B

Samuda Enterprises uses the aging approach to estimate bad debt expense. At the end of the current year, Samuda reported a

balance in accounts receivable of $$614,000$ and estimated that $$12,100$ of its accounts receivable would likely be uncollectible. The

allowance for doubtful accounts has a $$1,200$ debit balance at year$-$end $($i$.$e$.,$ more was written off during the year than the balance in

the account$).$

Required:

What amount of bad debt expense should be recorded for the current year?

What amount will be reported on the current year's balance sheet for accounts receivable?

Bad debt expense of current year

Accounts receivable $($net$)$ of current year