The following account balances were found for Jetson Corp. at the beginning of its fiscal year, January 1, 2020: Accounts Receivable (debit balance)................................................. $1,240,250 Allowance for Doubtful Accounts (credit balance)....................................... 19,220 The following transactions are for the year 2020: Sales for the year were $8,100,000, of which 60% was on credit, and sales returns, all on credit, were $146,000. Cash collections, excluding recoveries, were $5,416,000. Jetson wrote off $62,500 in receivables, 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. Required: Calculate the bad debt expense for the year and record the appropriate journal entry.
The following account balances were found for Jetson Corp. at the beginning of its fiscal year, January 1, 2020:
Accounts Receivable (debit balance)................................................. $1,240,250
Allowance for Doubtful Accounts (credit balance)....................................... 19,220
The following transactions are for the year 2020:
Sales for the year were $8,100,000, of which 60% was on credit, and sales returns, all on credit, were $146,000. Cash collections, excluding recoveries, were $5,416,000. Jetson wrote off $62,500 in receivables, 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.
Required: Calculate the
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