Bad debt expense
The following account balances were found for Jetson Corp. at the beginning of its fiscal year, January 1, 2020:
Accounts Receivable ...................................................$\$ 1,240,250$
Allowance for Doubtful Accounts........................................19,220
Sales for the year were $8,100,000, of which 60% was on credit, and sales returns were $146,000. Cash collections, excluding recoveries, were $5,416,000. Jetson had also written off $62,500, of which half was later recovered and collected. The company's credit and collection manager has estimated that 6% of outstanding accounts receivable are uncollectible.
Instructions
Calculate the bad debt expense for the year and record the appropriate journal entry.

Question

Bad debt expense
The following account balances were found for Jetson Corp. at the beginning of its fiscal year, January 1, 2020:
 Accounts Receivable ...................................................$\$ 1,240,250$
Allowance for Doubtful Accounts........................................19,220
Sales for the year were $8,100,000, of which 60% was on credit, and sales returns were $146,000. Cash collections, excluding recoveries, were $5,416,000. Jetson had also written off $62,500, of which half was later recovered and collected. The company's credit and collection manager has estimated that 6% of outstanding accounts receivable are uncollectible.
Instructions
Calculate the bad debt expense for the year and record the appropriate journal entry.

Quizplus · Accepted Answer

The Answer of Bad debt expense
The following account balances were found for Jetson Corp. at the beginning of its fiscal year, January 1, 2020:
 Accounts Receivable ...................................................$\$ 1,240,250$
Allowance for Doubtful Accounts........................................19,220
Sales for the year were $8,100,000, of which 60% was on credit, and sales returns were $146,000. Cash collections, excluding recoveries, were $5,416,000. Jetson had also written off $62,500, of which half was later recovered and collected. The company's credit and collection manager has estimated that 6% of outstanding accounts receivable are uncollectible.
Instructions
Calculate the bad debt expense for the year and record the appropriate journal entry.

Bad Debt Expense the Following Account Balances Were Found for Jetson

Bad Debt Expense
the Following Account Balances Were Found for Jetson