Corrigan's Grocery uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on
the basis of three time periods as follows: (1) not yet due, $17,800; (2) up to 120 days past due, $6,200; and (3) more than 120 days past
due, $4,300. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due
to uncollectibility is (1) 2 percent, (2) 14 percent, and (3) 35 percent, respectively. At the end of the current year, the Allowance for
Doubtful Accounts balance is $900 (credit) before the end-of-period adjusting entry is made.
Required:
What amount should be recorded as Bad Debt Expense for the current year?
Note: Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount.
Bad Debt Expense
1829