Swathmore Clothing Corporation grants its customers 30 daysâcredit. The company uses the allowance method for its uncollectibleaccounts receivable. During the year, a monthly bad debt accrual ismade by multiplying 3% times the amount of credit sales for themonth. At the fiscal year-end of December 31, an aging of accountsreceivable schedule is prepared and the allowance for uncollectibleaccounts is adjusted accordingly. At the end of 2015, accountsreceivable were $574,000 and the allowance account had a creditbalance of $54,000. Accounts receivable activity for 2016 was asfollows: Beginning balance $ 574,000 Credit sales 2,620,000Collections (2,483,000) Write-offs (68,000) Ending balance $643,000 The companyâs controller prepared the following agingsummary of year-end accounts receivable: Summary Age Group AmountPercent Uncollectible 0â60 days $ 430,000 4 % 61â90 days 98,000 1591â120 days 60,000 25 Over 120 days 55,000 40 Total $ 643,000
What is total bad debt expense and accounts receivable (net) for2016?
Swathmore Clothing Corporation grants its customers 30 daysâcredit. The company uses the allowance method for its uncollectibleaccounts receivable. During the year, a monthly bad debt accrual ismade by multiplying 3% times the amount of credit sales for themonth. At the fiscal year-end of December 31, an aging of accountsreceivable schedule is prepared and the allowance for uncollectibleaccounts is adjusted accordingly. At the end of 2015, accountsreceivable were $574,000 and the allowance account had a creditbalance of $54,000. Accounts receivable activity for 2016 was asfollows: Beginning balance $ 574,000 Credit sales 2,620,000Collections (2,483,000) Write-offs (68,000) Ending balance $643,000 The companyâs controller prepared the following agingsummary of year-end accounts receivable: Summary Age Group AmountPercent Uncollectible 0â60 days $ 430,000 4 % 61â90 days 98,000 1591â120 days 60,000 25 Over 120 days 55,000 40 Total $ 643,000
What is total bad debt expense and accounts receivable (net) for2016?
