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kogti [31]
3 years ago
14

Cook Co. determined that the net value of its accounts receivable at December 31, year 5, based on an aging of the receivables,

was $235,000. Additional information is as follows: Allowance for doubtful accounts – 1/1/year 5 $ 40,000 Uncollectible accounts written off during year 5 $ 22,000 Uncollectible accounts recovered during year 5 $ 8,000 Accounts receivable at 12/31/year 5 $ 270,000 How much was recognized as bad debt expense?
Business
1 answer:
lukranit [14]3 years ago
3 0

Answer:

$9,000                                                                                              

Explanation:

Uncollectible accounts Written off                    $22,000

Uncollectible accounts  recovered                    $(8,000)  

Allowance for bad debts-decrease                    $(5,000)

$40,000-*$35000  

Bad Debt Expense                                                 $9,000      

*(270,000-235,000)                                                                                            

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