Reference no: EM132569640

At January 1, 2023, THE Company had accounts receivable of $240,000 and an allowance for doubtful accounts with an $12,000 credit balance. During 2023, THE Company had sales revenue of $525,000 and wrote-off $21,000 of accounts receivable as being uncollectible.

The aging schedule below was prepared at December 31, 2023:

                                        Accounts Receivable                 % Uncollectible
not past due                            $125,000                                   2%
1-30 days past due                      85,000                                   8%
31-60 days past due                      38,000                                15%
61-90 days past due                     61,000                                 20%
over 90 days past due                     28,000                                35%

THE Company uses the aging method to estimate its bad debt expense.

Question 1: The bad debt expense reported by THE Company for 2023 was equal to:

Group of answer choices

Option 1: $46,000

Option 2: $25,000

Option 3: $33,000

Option 4: $16,000

Option 5: $37,000

Option 6: $28,000

Option 7: none of the above choices are correct