Wave inn's first year of operations is 2011. during the year the company had net credit sales of $2,939,000, bad debt write-offs of $99,000 (debit balance in the allowance for doubtful accounts), and cash collections of $2,060,000. at december 31, 2011, the company estimates that the net realizable value of accounts receivable is $750,000. what is the amount of bad debt expense reported on wave inn's income statement for the year ended december 31, 2011?

The amount of bad debt expense reported on Wave Inn's income statement for the year ended December 31, 2011 is $99,000

Explanation:

Bad debt: The amount which is not received by the company in respect of goods delivered to the customer

The computation of the bad debt expense is shown below:

The bad debt expense should be reported at the written off value i.e $99,0000

No further calculation or computation is required as there is no relevance. Hence, all other information should be ignored

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough