At January 1, 2002, Betty DeRose, Inc. had an allowance for doubtful accounts with a $4,200 credit balance. During 2002, Betty recovered $3,000 from customers that had been written off in the previous year. At December 31, 2002, Betty prepared the following aging schedule:
Accounts Receivable % Uncollectible
not past due $100,000 2%
1-30 days past due 50,000 4%
31-60 days past due 20,000 7%
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.
4,200 + 3,000 - (Sum of percentages * amounts = 10,600) = <3,400>
Right?
2007-10-26
19:33:13
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1 answers
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asked by
Andrew H
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Other - Business & Finance