Lafond Company analyzes its accounts receivable at December 31, 20 19, and arrives at the aged categories below along with the percentages that are estimated as uncollectible.

At the beginning of the fourth quarter of 2019. there was a credit balance of $4,350 in the Allowance for Uncollectible Accounts. During the fourth quarter, Lafond Company wrote off $3,830 in receivables as uncollectible.

a. What amount of bad debts expense will Lafond report for 2019?

b. What is the balance of accounts receivable that it reports on its December 31, 2019, balance sheet?

c. Set up T-accounts for both Bad Debts Expense and for the Allowance for Uncollectible Accounts. Enter any unadjusted balances along with the dollar effects of the information described (including your results from parts a and b). Explain the numbers in each of the T-accounts.

d. Suppose LaFond wrote off $1,000 more in receivables in the quarter? Or. $1.000 less? How would that affect the bad debt expense for the fourth quarter? How does the aging of accounts deal with the inevitable differences between estimated cash collections and actual cash collections?

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Age Group Accounts Receivable Estimated Loss % Current (not past due) 1-30 days past due 31-60 days past due. 61-120 days past due 121-180 days past due Over 180 days past due. $250,000 0.5% ..... 90,000 1 20,000 11,000 2 5 6,000 10 4,000 25 Total accounts receivable. $381.000