bad debt expense 375971
Aug 29, 2021 | Uncategorized
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A recent annual report for Target contained the following information (dollars in thousands) at the end of its fiscal year:
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|
|
Year 2 |
|
|
|
Year 1 |
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| Accounts receivable |
$ |
9,085,000 |
|
|
$ |
8,632,000 |
|
| Allowance for doubtful accounts |
|
(1,018,000 |
) |
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|
(569,000 |
) |
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|
|
|
|
|
|
|
|
$ |
8,067,000 |
|
|
$ |
8,063,000 |
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A footnote to the financial statements disclosed that uncollectible accounts amounting to $828,000 and $419,000 were written off as bad debts during year 2 and year 1, respectively. Assume that the tax rate for Target was 40 percent.
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| Required: |
| 1. |
Determine the bad debt expense for year 2 based on the preceding facts. (Hint:Use the Allowance for Doubtful Accounts T account to solve for the missing value.)(Enter your answer in thousands. Omit the “$” sign in your response.)
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