On 12/31/2019, Comfy Home’s customers collectively owed the company $250,000, but the company reported net accounts receivable on its balance sheet of $245,000. During 2020, Comfy Home wrote off $10,000 of its accounts receivable. On 12/31/2020, Comfy Home’s customers collectively owed the company $200,000, and the company estimated that 4% of its receivables would ultimately be uncollectible.

What amount of bad debt expense should the company record for the year 2020?

Answer rating: 100% (QA)

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