Calculate bad debt expense for the year

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Question: The following information relates to a company's accounts receivable: gross accounts receivable balance at the beginning of the year, $380,000; allowance for uncollectible accounts at the beginning of the year, $27,000 (credit balance); credit sales during the year, $1,350,000; accounts receivable written off during the year, $18,000; cash collections from customers, $1,250,000. Assuming the company estimates that future bad debts will equal 10% of the year-end balance in accounts receivable.

1. Calculate bad debt expense for the year.

2. Calculate the year-end balance in the allowance for uncollectible accounts.

Reference no: EM132742221

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