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Fey Corporation has aged its accounts receivable and estimated uncollectible accounts as follows (in thousands). If the amount in the allowance account before recording bad
Fey Corporation has aged its accounts receivable and estimated uncollectible accounts as follows (in thousands). If the amount in the allowance account before recording bad debt expense is $129, what bad debt expense should the company report for the current period?
Age of receivables | AR Balance | Estimated % uncollectible | Allowance |
Current | $5,500 | 1% | $55 |
30-60 days past due | 1,200 | 3% | 36 |
61-90 days | 850 | 6% | 51 |
Over 90 days | 420 | 10% | 42 |
A) $55 thousand
B) $184
C) $3,030
D) $129
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