Question

n the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of $82,700. During the year, Dinty wrote off $30,600 of accounts receivable it had attempted to collect and failed. Credit sales for the year were $2,220,000, and cash collections from credit customers totaled $1,760,000.What bad debt expense would Dinty report in its first-year income statement

Answer 1

Answer:

the bad debt expense reported is $113,300

Explanation:

The computation of the bad debt expense that should be reported in the first year income statement is shown below:

= Allowance for uncollectible accounts + write off account receivable

= $82,700 + $30,600

= $113,300

Hence, the bad debt expense reported is $113,300