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Johnson and Johnson's Accounts Receivable had a balance of $170,000 and its Allowance for Doubtful Accounts had a balance of $4,000 on December 31 before
Johnson and Johnson's Accounts Receivable had a balance of $170,000 and its Allowance for Doubtful Accounts had a balance of $4,000 on December 31 before making their adjusting entries for the year. Thus, net Accounts Receivable were $166,000. The company uses the Aging method of accounting for Bad Debts and prepared the following summary schedule from an aging of accounts receivable outstanding on December 31: 1-30 days 31-60 days 61-90 days Over 90 days Balance of AR $100,000 $40,000 $20,000 $10,000 Estimated Uncollectible % 1% 10% 30% 30% Determine the Bad Debt Expense to be recorded for the year. o $18,000 O $10,000 $22,000 o $14,000
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