Shadow Corp. estimates its uncollectible accounts by aging its accounts receivable and applying percentages to various aged categories of accounts. Shadow computes a total of $26,880 in estimated losses from uncollectible accounts as of December 31, 2021 based on its aging analysis. Its Accounts Receivable account has a balance of $902,400 and its Allowance for Uncollectible Accounts has a credit balance of $3,840 before adjustment at December 31, 2021. How much bad debt expense will Shadow Corp report in 2021

the bad debt expense reported is $23,040

Explanation:

The computation of the bad debt expense reported is shown below:

= Estimated losses arise from uncollectible accounts - credit balance of allowance for uncollectible accounts

= $26,880 - $3,840

= $23,040

Hence, the bad debt expense reported is $23,040

The above formula should be used for calculating the bad debt expense

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number