Question

T-Accounts Inc. has a 12/31 fiscal yearend and a consistently applied accounting policy (based on extensive experience and knowledge of its customers) that uncollectible accounts receivable are always about 6% of outstanding accounts receivable. At the beginning of Year 12 the net A/R balance was $1280. During Year 15, the following occurred related to accounts receivable: \begin{itemize} \item $5000 sales, 95% of which were on account \item $4000 in collections \item $200 in write-offs \item $50 in recoveries \end{itemize} Using T-Accounts' consistently applied policy and the above information, calculate bad debt expense for Year 15. (Partial credit available - show your work.)

          T-Accounts Inc. has a 12/31 fiscal yearend and a consistently applied accounting policy (based on
extensive experience and knowledge of its customers) that uncollectible accounts receivable are
always about 6% of outstanding accounts receivable. At the beginning of Year 12 the net A/R
balance was $1280. During Year 15, the following occurred related to accounts receivable:
\begin{itemize}
    \item $5000 sales, 95% of which were on account
    \item $4000 in collections
    \item $200 in write-offs
    \item $50 in recoveries
\end{itemize}
Using T-Accounts' consistently applied policy and the above information, calculate bad debt expense
for Year 15. (Partial credit available - show your work.)

T-Accounts Inc. has a 12/31 fiscal yearend and a consistently applied accounting policy (based on
extensive experience and knowledge of its customers) that uncollectible accounts receivable are
always about 6% of outstanding accounts receivable. At the beginning of Year 12 the net A/R
balance was 1280. During Year 15, the following occurred related to accounts receivable:

* 5000 sales, 95% of which were on account

*4000 in collections

* 200 in write-offs

*50 in recoveries

Using T-Accounts' consistently applied policy and the above information, calculate bad debt expense
for Year 15. (Partial credit available - show your work.)

Added by Manuela G.

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