Question
On December 31, 2019, Captain Morgan Company's total accounts receivable was $57,800.Captain Morgan Company uses an aging schedule to determine the required allowance for doubtful
On December 31, 2019, Captain Morgan Company's total accounts receivable was $57,800.Captain Morgan Company uses an aging schedule to determine the required allowance for doubtful accounts.A summary of the December 31, 2019, accounts receivable aging schedule indicates $40,000 in receivables are 0 to 60 days old and the estimated uncollectible percentage of this age group is 1%; $15,000 in receivables are 61 to 90 days old and the estimated uncollectible percentage of this age group is 2%;$2,000 in receivables are 91 to 120 days old and the estimated uncollectible percentage of this age group is 20%; and $800 in receivables are over 120 days old and the estimated uncollectible percentage of this age group is 50%.The allowance for uncollectible accounts had a balance of $1,100 at January 1, 2019.During 2019, $1,200 in accounts were written off, and $500 of previously written off accounts were subsequently collected.Bad debt expense for the year ended December 31, 2019 is:
A) $1,100
B) $1,500
C) $1,600
D) $1,900
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