Calculate bad debt expense for the year


Problem: The following information relates to a company's accounts receivable: accounts receivable balance at the beginning of the year, $319,000; allowance for uncollectible accounts at the beginning of the year, $25,400 (credit balance); credit sales during the year, $1,506,000; accounts receivable written off during the year, $15,200; cash collections from customers, $1,433,000. Assume the company estimates that future bad debts will equal 10.0% of the year-end balance in accounts receivable.

(a) Calculate bad debt expense for the year. (Round all calculations to the nearest dollar. Omit the "$" sign in your response.)

(b) Calculate the year-end balance in the allowance for uncollectible accounts. (Round all calculations to the nearest dollar. Omit the "$" sign in your response.)

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Accounting Basics: Calculate bad debt expense for the year
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