Question - At January 1, 2002, Betty DeRose, Inc. had an allowance for bad debts with a $4,500 credit balance.
During 2002, Betty wrote-off as uncollectible accounts receivable in the amount of $5,200. Betty prepared the following aging schedule at December 31, 2002:
Accounts Receivable % Uncollectible not past due $100,000 1%
1-30 days past due 50,000 3%
31-60 days past due 20,000 5%
61-90 days past due 10,000 20%
over 90 days past due 8,000 40%
Based on the above information, calculate the amount of bad debt expense recorded by Betty DeRose, Inc. for 2002. Do not use decimals in your answer.