Q10

At December 31, 2011. Tara Co.'s allowance for doubtful accounts balance was $22,000. During 2012, Tara wrote off $18,000 in receivables. The following information pertains to Tara Co.'s accounts receivable at December 31, 2012: Est. % Uncollectible Days Outstanding 0 - 60 61 - 120 Over 120 1% Amount $120,000 90,000 120,000 $330,000 2% 6% Determine how much bad debt expense Tara will report for the year ended December 31, 2012. 1) $10,200 2) $6,200 3) $18,000 4) $11,800 5) None of these answers is correct