Calculate the bad debt expense for the year

Reference no: EM132651348

Question - The following account balances were found for Jetson Corp. at the beginning of its fiscal year, January 1, 2020:

Accounts Receivable $1,240,250

Allowance for Doubtful Accounts 19,220

Sales for the year were $8,100,000, of which 60% was on credit, and sales returns were $146,000. Cash collections, excluding recoveries, were $5,416,000. Jetson had also written off $62,500, of which half was later recovered and collected. The company's credit and collection manager has estimated that 6% of outstanding accounts receivable are uncollectible.

Instructions - Calculate the bad debt expense for the year and record the appropriate journal entry. How do your differentiate between IFRS and ASPE in that method?

Reference no: EM132651348

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