Outstanding accounts receivable will be collectible

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Reference no: EM13776921

Before adjustments for bad debt, company H ended 2014 with regular balances in accounts receivable and the allowance for doubtful accounts of 35,000 and 300 respectively. The company recognized 250,000 of credit sales during the year. They estimate 2% of credit sales will likely be uncollectible and report bad debt expense at 5,000.

After aging its receivables, company H estimates that only 32,750 of the outstanding accounts receivable will be collectible. What will company H report as bad debt expense on it's 2014 income statement?

Reference no: EM13776921

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