Assume Bear industries reported the following adjusted account balances at year-end. Accounts Receivable Allowance for Doubtful Accounts 20X2 1.281.537 1.366,723 85,186 20X1 $1,350,920 (77.200) Assume the company recorded no write-offs or recoveries during 20X2. What was the amount of Bad Debt Expense reported in 20x21
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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