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1. (1.5 pts) The Washington Football Team Co (WFT) uses the balance sheet approach to estimate bad debt expense. WFT estimates the allowance for uncollectible
1. (1.5 pts) The Washington Football Team Co (WFT) uses the balance sheet approach to estimate bad debt expense. WFT estimates the allowance for uncollectible accounts to be 15% of the year-end balance of (gross) accounts receivable. Based on the information below, what bad debt expense should WFT recognize during 2019 (WFT's fiscal year ends on December 31)? On December 31, 2018, WFT reported an accounts receivable balance of $180,000, net of an allowance for doubtful accounts of $25,000 on its balance sheet. During 2019, WFT sold $1,100,000 on credit and collected $1,030,000 in cash related to these sales. WFT wrote off $15,000 in accounts and reinstated accounts that were previously written off for $2,000 (Note: the cash collections related to the reinstatement are not included in the general cash collections listed)
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