The Webster Company uses the aging method to estimate the allowance for doubtful accounts. The following schedule of accounts receivable was prepared as at December
31, 20x6:
Age Balance %
uncollectible
0-30 days $674,000 0.5%
31-60 days 186,000 1.2%
61-90 days 65,400 10%
91-120 days 19,500 50%
Over 120 Days 7,800 75%
$952,700
The balance in the allowance for doubtful accounts at the beginning of the year was $31,150 (cr). The following transactions were recorded during the year:
Accounts receivable written off 34,500
Recoveries of accounts receivable written off as uncollectible in prior periods
2,300
Required –
Calculate the bad debt expense for the year 20x6.