Question
At January 1, 2021, Betty DeRose, Inc. reported an allowance for doubtful accounts with a $4,270 credit balance. During 2021, Betty recovered $1,790 from customers
At January 1, 2021, Betty DeRose, Inc. reported an allowance for doubtful accounts with a $4,270 credit balance. During 2021, Betty recovered $1,790 from customers that had been written-off in the previous year. Additionally, during 2021, Betty wrote-off as uncollectible accounts receivable totaling $7,940. At December 31, 2021 Betty DeRose had total accounts receivable of $300,000 and prepared the following aging schedule: Accounts Receivable % Uncollectible not past due $160,000 2% 1-30 days past due 57,000 9% 31-60 days past due 46,000 17% 61-90 days past due 22,000 28% over 90 days past due 15,000 44% total accounts receivable $300,000
Calculate the amount of bad debt expense recorded by Betty DeRose for 2021.
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