Question

At January 1,2019, Towing Company reported an allowance for bad debts with a $4,300
credit balance. At December 31, 2019, Towing Company prepared the following aging
schedule:

                     Accounts Receivable      % Uncollectible
not past due            $135,000                     3%
1-30 days past due        42,000                     7%
31-60 days past due       28,000                    11%
61-90 days past due       15,000                    16%
over 90 days past due      4,000                    54%

Based on the above information, Towing Company reported bad debt expense of $11,600
for 2019. 

Calculate the amount of accounts receivable written off as uncollectible by Towing
Company during 2019.

Answer 1

	Accounts receivable	% Uncollectible	Amount uncollectible
Not past due	135000	3%	4050
1-30 days past due	42000	7%	2940
31-60 days past due	28000	11%	3080
61-90 days past due	15000	16%	2400
Over 90 days past due	4000	54%	2160
Allowance for bad debt			14630

Accounts receivable written off as uncollectible = Bad debts expense - Ending Credit balance in Allowance for bad debt + Beginning Credit balance in allowance for bad debt = 11600 - 14630 + 4300

1270