(Solution) - Bradford Plumbing had the following data for a recent year Credit -(2025 Original AI-Free Solution)

Paper Details

Bradford Plumbing had the following data for a recent year:
Credit sales ..................... $873,600
Allowance for doubtful accounts, 1/1 (a credit balance).... 19,430
Accounts receivable, 1/1 ................ 67,350
Collections on account receivable ............. 846,000
Accounts receivable written off ............. 16,840
Bradford estimates that 2.4 percent of credit sales will eventually default.
Required:
1. Compute bad debt expense for the year (rounding to the nearest whole number).
2. Determine the ending balances in accounts receivable and allowance for doubtful accounts.