In: Accounting
At January 1, 2022, Betty DeRose, Inc. had an allowance for bad debts with an $11,890 credit balance. Betty recorded bad debt expense of $39,300 for 2022. At December 31, 2022, Betty prepared the following aging schedule: Accounts Receivable % Uncollectible not past due $156,000 2% 1-30 days past due 67,000 8% 31-60 days past due 25,000 12% 61-90 days past due 19,000 24% over 90 days past due 11,000 60% Calculate the amount of accounts receivable Betty wrote-off as uncollectible during 2022.
BEGINNING Allowance balance | 11,890 | ||
Add: Bad debt expense | 39,300 | ||
Less: ending balance of allowance | (22,640) | (Note 1) | |
accounts receivable Betty wrote-off as uncollectible | 28,550 | ||
NOTE 1; | |||
Accounts Receivable | % Uncollectible | Amount Uncollectible | |
Not past due | 156,000 | 2% | 3,120 |
1-30 days | 67,000 | 8% | 5,360 |
31-60 days | 25,000 | 12% | 3,000 |
61-90 Days | 19,000 | 24% | 4,560 |
Over 90 days | 11,000 | 60% | 6,600 |
Ending allowance balance | 22,640 | ||