How much Bad debt expense will East Coast Co. recognize on its 2024 income statement? Please provide a dollar value?

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As of Dec. 31, 2021, Miller Corporation has an Allowance for doubtful accounts balance of $2,700. Miller Corp. applies the percent of sales method to estimate Bad debt expense. Specifically, it estimates that 3% of its $3,900,000 of credit sales during the 2022 FY will be uncollectible. In addition, it writes-off $2,000 of its accounts during the 2022 FY. Finally, at the end of the 2022 FY, curious executives analyze the remaining customer accounts and categorize each by the age of the account, which the following table summarizes. Account balances % uncollectible < 30 $530,000 1.66% Account age (days) 61-75 31-60 $ 78,000 5.24% 76-90 $ 14,500 $ 21,200 9.31% 26.48% > 90 $ 60,300 98.73% As of Dec. 31, 2021, Miller Corporation has an Allowance for doubtful accounts balance of $2,700. Miller Corp. applies the percent of sales method to estimate Bad debt expense. Specifically, it estimates that 3% of its $3,900,000 of credit sales during the 2022 FY will be uncollectible. In addition, it writes-off $2,000 of its accounts during the 2022 FY. Finally, at the end of the 2022 FY, curious executives analyze the remaining customer accounts and categorize each by the age of the account, which the following table summarizes. Account balances % uncollectible < 30 $530,000 1.66% Account age (days) 61-75 31-60 $ 78,000 5.24% 76-90 $ 14,500 $ 21,200 9.31% 26.48% > 90 $ 60,300 98.73%

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Calculation of the Estimated Uncollectible Amount based on Credit Sales Credit Sales for 2022 390000... View the full answer