How much should be reported as bad debt expense

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Question

YRC uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered current and have a 2% uncollectible rate. Accounts more than 60 days are considered deliquent and have a 35% uncollectible rate. YRC allowance for doubtful accounts currently has an unadjusted debit balance of $552.

If YRC has $67700 of current accounts and $4470 of deliquent accounts how much should be reported as bad debt expense?

Reference no: EM132315975

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