XYZ Company Estimates Their Allowance for Doubtful Accounts (ADA)by Aging

question 15

Essay

XYZ Company estimates their allowance for doubtful accounts (ADA)by aging their accounts receivable. At the end of 2021, the balance in the ADA was $165,000. During 2022, XYZ wrote off $16,000 and collected a $14,500 receivable that had been previously written off as uncollectable. At the end of 2022, the aging schedule indicated that the balance in the ADA should be $187,000. How much is the bad debts expense for 2022?

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Definitions:

Timing Circuit

An electronic circuit designed to produce specific time delays or to trigger events at precise intervals.

Cascading

In the programming of timers and counters, a technique used to extend the timing or counting range beyond what would normally be available. This technique involves the driving of one timer or counter instruction from the output of another, similar instruction.

Timers

Devices or software tools that measure time intervals, commonly used in industrial control systems to control operations and processes over time.

Motor(s) Start(s)

The process of initiating the operation of an electric motor, activating its mechanism to begin rotation or movement.