Question

At January 1, 2021, Betty DeRose, Inc. reported an allowance for doubtful
accounts with a $4,270 credit balance. During 2021, Betty recovered $1,790
from customers that had been written-off in the previous year. Additionally,
during 2021, Betty wrote-off as uncollectible accounts receivable totaling
$7,940. At December 31, 2021 Betty DeRose had total accounts receivable of
$300,000 and prepared the following aging schedule:

                               Accounts Receivable      % Uncollectible
     not past due                   $160,000                   2%
     1-30 days past due               57,000                   9%
     31-60 days past due              46,000                  17%
     61-90 days past due              22,000                  28%
     over 90 days past due            15,000                  44%
       total accounts receivable    $300,000

Calculate the amount of bad debt expense recorded by Betty DeRose for 2021.

Answer 1

	Accounts Receivable	% Uncollectible	Amount Uncollectible
Not past due	160000	2%	3200
1-30 days past due	57000	9%	5130
31-60 days past due	46000	17%	7820
61-90 days past due	22000	28%	6160
Over 90 days past due	15000	44%	6600
Total			28910
Allowance for doubtful accounts balance	-1880	=4270+1790-7940
Bad debt expense	30790	=28910+1880