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A year-end review of accounts receivable and estimated uncollectible percentages revealed the following: Category Accounts Receivable Uncollectible percentages 1-30 days $40,000 1.5% 31-60 days $10,000 8.0% 61-90 days $6,000 15.0% The beginning balance of Allowance for Doubtful Accounts is $400 (credit). Based on this information, the bad debt expense for the year is:

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abiolataiwo2015

Answer:

$1,900

Explanation:

Calculation to determine what the bad debt expense for the year is:

Accounts Receivable Uncollectible percentages 1-30 days $40,000* 1.5% =$600

31-60 days $10,000 *8.0% =$800

61-90 days $6,000 *15.0% =$900

Total $2,300

Bad debt expense =$2,300-400

Bad debt expense =$1,900

Therefore Based on this information, the bad debt expense for the year is:$1,900

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