The accounts receivable clerk had prepared the following aging of Northumberland Corp's accounts receivable.The current balance in the allowance for uncollectible receivables is $9,800 CR.What is the bad debt expense for the year? $\begin{array}{ccc}
\text { Date since due: } & \$ & \% \text { uncollectible } \
0-30 \text { days } & 500,000 & 1 \% \
30-60 \text { days } & 200,000 & 4 \% \
\text { Over } 60 \text { davs } & 100,000 & 10 \%\
\text { Total }&\$800,000&5 \% \text { (average) }
\end{array}$

Question

Quizplus · Accepted Answer

The bad debt expense is calculated by applying the given percentages of uncollectibility to the respective age categories of accounts receivable and then adjusting for the current balance in the allowance for uncollectible receivables. Calculation: $500,000 \times 1\% = 5,000$, $200,000 \times 4\% = 8,000$, $100,000 \times 10\% = 10,000$. Total uncollectible = $5,000 + 8,000 + 10,000 = 23,000$. The current allowance is a credit of $9,800, so the additional expense required to adjust the allowance to the calculated total uncollectible is $23,000 - 9,800 = 13,200$.

The Accounts Receivable Clerk Had Prepared the Following Aging of Northumberland