Questions by molly04 - Page 75
the red raider co. provides services for both cash and on account. the accounts are adjusted monthly. for september, the following information is available: accounts receivable on september 1st is $31,200 allowance for doubtful accounts on september 1st is $4,400. services provided during september for cash $41,000. services provided during september on account $57,000. during the month collections on account were $50,200 and accounts written off as bad debts were $3,000. at year-end, the company ages its receivables to the following aging schedule: age of accounts ar curent period previous period $35,000 $26,000 $9,000 estimated % uncollectible 5% 50% what amount will red raider report as bad debt expense on the income statement?