Calculate the amount of bad debt expense


At January 1, 2002, Betty DeRose, Inc. had an allowance for bad debts with a $2,700 credit balance. During 2002, Betty wrote-off accounts receivable as uncollectible in the amount of $850. The aging schedule below was prepared by Betty DeRose, Inc. at December 31, 2002:

                           Accounts Receivable     % Uncollectible

not past due                 $180,000                    2%
1-30 days past due      40,000                          5%
31-60 days past due    20,000                          8%
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 for 2002. Do not use decimals in your answer.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Calculate the amount of bad debt expense
Reference No:- TGS0555851

Expected delivery within 24 Hours