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As of January 1, 2016, Sunil Company has an allowance for doubtful accounts balance of $4,000. The firm's December 31, 2016 ending accounts receivable balance
As of January 1, 2016, Sunil Company has an allowance for doubtful accounts balance of $4,000. The firm's December 31, 2016 ending accounts receivable balance is $375,000, and its Accounts Receivable Aging Schedule as of December 31, 2016 is as follows: Current...... $304,000 0-60 days past due........... $44,000 61-180 days past due......... $18,000 Over 180 days past due..... $9,000 In the past, Sunil Co. has experienced accounts receivable losses as follows: 2% of current balances, 6% of balances 0-60 days past due, 10% of balances 61-180 days past due, and 57% of balances over 180 days past due. Using the above information, how much bad debt expense should Sunil Company recognize in 2016? Assume the firm prepares financial statements annually. Round to the nearest whole number
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