As of January 1, 2024, Barley Company had a credit balance of $520,000 in its allowance for uncollectible accounts. Based on experience, 2% of Barley's gross accounts receivable have been uncollectible. During 2024, Barley wrote off $650,000 of accounts receivable. Barley's gross accounts receivable as December 31, 2024 is $18,000,000. How much bad debt expense should Barley record for 2024?
As of January 1, 2024, Barley Company had a credit balance of $520,000 in its allowance for uncollectible accounts. Based on experience, 2% of Barley's gross accounts receivable have been uncollectible. During 2024, Barley wrote off $650,000 of accounts receivable. Barley's gross accounts receivable as December 31, 2024 is $18,000,000. How much bad debt expense should Barley record for 2024?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:As of January 1, 2024, Barley Company had a credit
balance of $520,000 in its allowance for uncollectible
accounts. Based on experience, 2% of Barley's gross
accounts receivable have been uncollectible. During
2024, Barley wrote off $650,000 of accounts
receivable. Barley's gross accounts receivable as
December 31, 2024 is $18,000,000.
How much bad debt expense should Barley record
for 2024?
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