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Black Co. uses the allowance method of accounting for bad debts. The company produced the following aging of accounting receivable at year-end. Total Number of
Black Co. uses the allowance method of accounting for bad debts. The company produced the following aging of accounting receivable at year-end. Total Number of Days Outstanding Not yet due Up to 90 days past due $20,000 $6,000 More than 90 days past due $2,000 $28,000 Accounts Receivable % uncollectible 2% 10% 25% At the end of the year, the Allowance for Doubtful Accounts balance was $1,000 (credit) before the end-of-period adjusting entry is made What amount should be recorded as Bad Debt Expense for the current year
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