Question
On January 1, 2022, Kerr Inc.'s accounts receivable were $751,000 gross, and $724,400 net of allowance for uncollectibles. During 2022, Kerr wrote off $45,000 uncollectible
On January 1, 2022, Kerr Inc.'s accounts receivable were $751,000 gross, and $724,400 net of allowance for uncollectibles.
During 2022, Kerr wrote off $45,000 uncollectible accounts.
An aging analysis of Kerr's receivables showed the following on Dec. 31, 2022:
Current: $638,000 and percent collectible 98%
1-60 days past due: $51,000 and percent collectible 86%
61+ days past due: $112,000 and percent collectible 65%
What amount of bad debt expense should Kerr report for 2022?
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College Accounting Chapters 1-30
Authors: John Price, M. David Haddock, Michael Farina
14th edition
978-1259284861, 1259284867, 77862392, 978-0077862398
