Question:
XYZ Company had a $4,000 credit balance in its allowance for bad debts at January 1, 2002.
At December 31, 2002, XYZ Company prepared the following aging schedule:
Accounts Receivable % Uncollectible
not past due $120,000 2%
1-30 days past due 40,000 5%
31-60 days past due 30,000 8%
61-90 days past due 10,000 15%
over 90 days past due 2,000 50%
Based on the above information, XYZ Company reported bad debt expense of $8,200 for 2002.
Calculate the amount of accounts receivable written off as uncollectible by XYZ Company during 2002.