Calculate the balance in the allowance for doubtful accounts

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THE Company uses the net credit sales method to estimate bad debt expense and has estimated that 3.5% of its credit sales will be uncollectible. During 2021, THE Company reported net credit sales of $537,000 and collected a total of $486,000 cash from its credit customers. Also during 2021, THE Company wrote off $19,000 of accounts receivable as being uncollectible and recorded recoveries of previously written off accounts receivable totaling $10,000. At January 1, 2021, THE Company had an allowance for doubtful accounts with a $15,000 credit balance.

Question 1: Calculate the balance in the allowance for doubtful accounts at December 31, 2021.

Reference no: EM132569655

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