Question

Cook Co. determined that the net value of its accounts receivable at December 31, 20X4, based on an aging of the receivables, was $235,000. Additional information is as follows: Allowance for doubtful accounts – 1/1/X4 $ 40,000 Uncollectible accounts written off during 20X4 $ 22,000 Uncollectible accounts recovered during 20X4 $ 8,000 Accounts receivable at 12/31/X4 $ 270,000 How much was recognized as bad debt expense?

Answer 1

Answer:

$9,000

Explanation:

  Bad Debts Written off                                 $22,000

 Uncollectible accounts-recovered             $(8,000)

 Allowance for doubtful accounts reversed

 (opening-closing $40,000-$35,000*)        ($5,000)

Bad Debt Expense for the year                    $9,000

*270,000-235,000  =35,000