question 1

As of 2013 Year End before adjusting journal entries, the Colorful Company has accounts receivable in the amount of $255,000 and allowance of doubtful account of $3,050. The $255,000 accounts receivable includes $150,000, $100,000, and $5,000 that has been outstanding for 10 days, 40 days and 75 days respectively. The company's historical records show that for accounts of these ages, the likelihood of collectability is about 99.5%, 98% and 90% respectively. Calculate the bad debt expense for 2013.

1. Show your work below and enter your answer in the next question.

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