Question

Jr-6Wq Company reported the following account balances at
January 1, 2039:

  accounts receivable ................  $246,826
  allowance for bad debts ............  $ 25,561

During 2039, Jr-6Wq Company wrote-off as uncollectible
accounts receivable totaling $41,798.

At December 31, 2039, Jr-6Wq Company prepared the following
aging schedule:

                        Accounts Receivable    % Uncollectible
  not past due               $229,400                 2%
  1-2 months past due         137,800                 6%
  3-4 months past due          83,270                10%
  5-6 months past due          55,620                20%
  over 6 months past due       26,700                42%

Calculate Jr-6Wq Company's bad debt expense for 2039.

Answer 1

Answer: $17,960

Calculations:

	Accounts receivable	% of uncollectible	Uncollectibles
Not past due	$229,400	2%	$4,588
1-2 months past due	$137,800	6%	$8,268
3-4 months past due	$83,270	10%	$8,327
5-6 months past due	$55,620	20%	$11,124
Over 6 months past due	$26,700	42%	$11,214
Total Uncollectibles			$43,521

T-Account:

Allowance for doubtful accounts
		Beginning	$25,561
		Bad debt expense [Difference]	$17,960
………	………	Ending [Calculated above]	$43,521