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Odonnel Inc. had the following account balances for Year4 and Year3. 12/31/Year4 12/31/Year3 Accounts receivable (balance in the account, not net) 82,400 65,700 Allowance for
Odonnel Inc. had the following account balances for Year4 and Year3.
12/31/Year4 | 12/31/Year3 | |
Accounts receivable (balance in the account, not net) | 82,400 | 65,700 |
Allowance for doubtful accounts (normal, credit, negative asset balance) | 5,870 | 3,460 |
Bad debt expense | 10,200 | 9,300 |
There were no recoveries of previously written-off accounts during Year4.
What were Odonnel's write-offs during Year4?
How much of the Accounts receivable at the end of Year4 does Odonnel expect to collect?
Do not use any punctuation ($, commas, periods, etc.)
Hint: This is a smaller version of an OWL problem. I suggest you set up beginning balances for Year4 in the equation. Record what you know happened in Year4-- and then you can compute what write-offs must gave been in Year4.
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