Uestion Bad Debts Expense

12/31/06

Accounts receivable

$1,050,000

Allowance

(90,000)

Cash realizable value

$960,000

During 2007 sales on account were $290,000 and collections on account were $172,000. Also during 2007 the company wrote off $16,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $108,000.

Bad debts expense for 2007 is

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