At January 1, 2002, Betty DeRose, Inc. had an allowance for doubtful accounts

At January 1, 2002, Betty DeRose, Inc. had an allowance for doubtful accounts with a $2,700 credit balance. During 2002, Betty did not write-off any accounts receivable as uncollectible. Additionally, during 2002, Betty recorded $1,400 of recoveries of accounts receivable written off in prior years. At December 31, 2002, Betty prepared the following aging schedule:

Accounts Receivable % Uncollectible

not past due $150,000 2%

1-30 days past due 35,000 5%

31-60 days past due ? 8%

61-90 days past due 8,000 15%

over 90 days past due 2,000 50%

Based on the above information, Betty DeRose, Inc. estimated its bad debt expense to be $6,210 for 2002. Calculate the amount of accounts receivable that were 31-60 days past due. Do not use decimals in your answer.

Here’s the SOLUTION

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