As of December 31, 2013, Amy Jo\'s Appliances had unadjusted account balances in accounts receivable of $308,000 and $1,050 in the allowance for uncollectible accounts, following 2013 write-offs of $6,510 in bad debts. An analysis of Amy Jo\'s December 31, 2013, accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. Bad debt expense for 2013 should be: Solution 308,000 x 2% = 6,160 AMOUNT ESTIMATED TO BE UNCOLLECTIBLE Since the Allowance account has a current debit balance of $1050, bad debt expense = 6160 .

1. As of December 31, 2013, Amy Jo's Appliances had unadjusted account balances in accounts
receivable of $308,000 and $1,050 in the allowance for uncollectible accounts, following 2013
write-offs of $6,510 in bad debts. An analysis of Amy Jo's December 31, 2013, accounts
receivable suggests that the allowance for uncollectible accounts should be 2% of accounts
receivable. Bad debt expense for 2013 should be:
As of December 31, 2013, Amy Jo's Appliances had unadjusted account balances in accounts
receivable of $308,000 and $1,050 in the allowance for uncollectible accounts, following 2013
write-offs of $6,510 in bad debts. An analysis of Amy Jo's December 31, 2013, accounts
receivable suggests that the allowance for uncollectible accounts should be 2% of accounts
receivable. Bad debt expense for 2013 should be:
Solution
308,000 x 2% = 6,160 AMOUNT ESTIMATED TO BE UNCOLLECTIBLE
Since the Allowance account has a current debit balance of $1050,
bad debt expense = 6160