Question BettyDeRose, Inc. prepared the following aging schedule at December 31,

ID: 2457996 • Letter: Q

Question

Question

BettyDeRose, Inc. prepared the following aging schedule at December 31,2003:

Accounts Receivable %Uncollectible

not pastdue $120,000 2%

1-30 dayspast due 40,000 5%

31-60 dayspast due 25,000 8%

61-90 dayspast due 5,000 15%

over 90days past due 2,000 50%

At January1, 2003, the balance in the allowance for doubtful accounts was acredit balance

of $1,200.During 2003, Betty did not record any recoveries of accountsreceivable previously

written-off as uncollectible. However, during 2003, Betty recorded$1,400 of write-offs of

accountsreceivable determined to be uncollectible.

Based onthe above information, calculate the amount of bad debtexpense recorded by Betty

Question

not pastdue $120,000 2% 2,400

1-30 dayspast due 40,000 5% 2,000

31-60 dayspast due 25,000 8% 2,000

61-90 dayspast due 5,000 15% 750

over 90days past due 2,000 50% 1,000