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Question - IVAN Company had the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $100,000; Allowance for Uncollectible Accounts = $4,100 (credit). IVAN estimates uncollectible accounts based on an aging of accounts receivable as shown below:
Age Group (days past due)
Accounts Receivable
Estimated Percent Uncollectible
Not yet due
$50,000
4%
0-30
$20,000
8%
31-60
$18,000
10%
More than 60
$12,000
40%
Required - What amount of bad debt expense did IVAN record in its December 31, 2021, adjustment to the allowance account?
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