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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started