Question

Coronado Industries prepared an aging of its accounts receivable at December 31, 2020 and determined that the amount expected to be collected was $898000. Additional information is available as follows: Allowance for uncollectible accounts at 1/1/20—credit balance $102000 Accounts written off as uncollectible during 2020 68500 Accounts receivable at 12/31/20 971500 Uncollectible accounts recovered during 2020 14900 For the year ended December 31, 2020, Coronado's bad debt expense would be

Answer 1

Answer:

$73,500

Explanation:

Given data

Amount expected to be collected $898,000

Allowance for uncollectible accounts at 1/1/20 - credit balance $102,000 Accounts written off as uncollectible during 2020 $68,500

Accounts receivable at 12/31/20 $971,500

Uncollectible accounts recovered during 2020 $14,900

The computation of the bad debt expense is shown below:

Bad debt expense = Ending balance of account receivable - amount expected to be collected

= $971,500 - $898,000

= $73,500