What should jame company report as bad debt expense for year

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Point 1: The James Company starts Year One with accounts receivable of $370,000 and an allowance for doubtful accounts of $22,200 (a credit balance). During the year, credit sales of $1.9 million were made and cash of $1.2 million was collected. Accounts with a total balance of $50,000 were written off during the period as uncollectible. Company officials believe that 6 percent of ending accounts receivables will eventually prove to be uncollectible.

Question 1: What should James Company report as its bad debt expense for this year?

Reference no: EM132484487

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