Reference no: EM132619281
Question - The accounting information of Lupin Company included the following for the year ended December 31, 2020:
Accounts receivable, January 1, 2020 $ 125,000
Credit sales in 2020 1,400,000
Allowance for doubtful accounts, January 1, 2020 15,000
Cash collected on accounts receivable during 2020 1,350,000
Required - Assume Lupin estimates its allowance for doubtful accounts as being 10% of December 31, 2020 accounts receivable. What would be Lupin's bad debt expense for 2020?