Company A had a 01/01/23 balance in the Allowance for Doubtful Accounts of $3,800. During 2023,...

 

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Company A had a 01/01/23 balance in the Allowance for Doubtful Accounts of $3,800. During 2023, it collected $900 on accounts previously written off and wrote off $1,700 of receivables. At 12/31/23, Company A's accounts receivable show the following balances by age: Age of Receivable 0-30 days 31-60 days 61-120 days More than 120 days Balance $380,000 110,000 25,000 12,000 Company A uses the following percentages to compute the estimated amounts of receivables that will eventually prove uncollectible: 0-30 days, 0.5%; 31-60 days, 1.5%; 61-120 days, 5%; and more than 120 days, 10%. How much bad debt expense should Company A recognize in the adjusting journal entry? Company A had a 01/01/23 balance in the Allowance for Doubtful Accounts of $3,800. During 2023, it collected $900 on accounts previously written off and wrote off $1,700 of receivables. At 12/31/23, Company A's accounts receivable show the following balances by age: Age of Receivable 0-30 days 31-60 days 61-120 days More than 120 days Balance $380,000 110,000 25,000 12,000 Company A uses the following percentages to compute the estimated amounts of receivables that will eventually prove uncollectible: 0-30 days, 0.5%; 31-60 days, 1.5%; 61-120 days, 5%; and more than 120 days, 10%. How much bad debt expense should Company A recognize in the adjusting journal entry?

Answer rating: 100% (QA)

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