Kaur Company had a January 1, 2022 balance in Allowance for Doubtful Accounts of $4,000...
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Kaur Company had a January 1, 2022 balance in Allowance for Doubtful Accounts of $4,000 credit. The estimated Bad Debts are 1.5 percent of net credit sales. During 2022, net credit sales were equal to $416,200. Other transactions for 2022 were as follows:
Feb. 10 A $1,000, 60-day, 12 percent note receivable was dishonoured. Collection was expected at a later date.
Apr. 15 Aadi Gagneja's account receivable of $3,900 was deemed uncollectible.
July 1 Minh Le paid the full amount ($1,275) of his previously written-off account receivable. The receivable had been written off in 2021.
What should be the December 31, 2022 balance in the Allowance for Doubtful Accounts account after adjustment?
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