The following information relates to Bedford Company's accounts receivable:
Accounts receivable balance on December 31, 2011……………………$ 900,000
Allowance for doubtful accounts balance on December 31, 2011…….... 55,000
Credit sales made in 2012………………………………………………..5,800,000
Collections from customers on account in 2012…………………………4,900,000
Accounts receivable written off in 2012………………………………… 70,000
Accounts previously written off that were recovered in 2012
(not included in the collections above) …………………………………. 6,000
An aging analysis estimates the uncollectible receivables on December 31, 2012, to be $80,000. The allowance account is to be adjusted accordingly.
Required:
a. Calculate the ending balance in accounts receivable, as at December 31, 2012.
b. Calculate the allowance for doubtful accounts balance, before adjustment, as at December 31, 2012
c. Calculate the bad debts expense for the year 2012.