Eleazar uses the aging method to record bad debt at the end of each fiscal year...
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Eleazar uses the aging method to record bad debt at the end of each fiscal year on December 31. This year he made sales on account of $100,000, none of which he has collected. He also has outstanding account receivable aged 1-2 years of $20,000 and over 2 years of $5,000. Based on historical data, he estimates that the following receivables are uncollectible: • 1% of accounts receivable aged 1 year or less • 2.5% of accounts receivable aged 1-2 years • 4% of accounts receivable aged 2+ years The beginning balance in allowance for doubtful accounts is $1,405. Assuming write offs this year totaled $1,170, what is Eleazar's bad debt expense for the year? Eleazar uses the aging method to record bad debt at the end of each fiscal year on December 31. This year he made sales on account of $100,000, none of which he has collected. He also has outstanding account receivable aged 1-2 years of $20,000 and over 2 years of $5,000. Based on historical data, he estimates that the following receivables are uncollectible: • 1% of accounts receivable aged 1 year or less • 2.5% of accounts receivable aged 1-2 years • 4% of accounts receivable aged 2+ years The beginning balance in allowance for doubtful accounts is $1,405. Assuming write offs this year totaled $1,170, what is Eleazar's bad debt expense for the year?
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