The CHS Company has provided the following information: Accounts receivable writ

ID: 2554457 • Letter: T

Question

The CHS Company has provided the following information:

Accounts receivable written-off as uncollectible during the year amounted to $12,300.

The accounts receivable balance at the beginning of the year was $230,000.

The accounts receivable balance at the end of the year was $290,000.

The allowance for doubtful accounts balance at the beginning of the year was $14,800.

The allowance for doubtful accounts balance at the end of the year after the recording of bad debt expense was $13,700.

Credit sales during the year totaled $940,000.

How much was CHS Company's bad debt expense?

Calculation of Bad debts expense of CHS Company:

Allowance for the doubtful debts at the end of the year

13,700

Add: Accounts receivable written off

12,300

26,000

Less: Allowance for the doubtful debts at the beginning of the year

(14,800)

CHS Company Bad Debts Expenses

11,200