2. A company uses the aging of accounts receivable method to estimate its bad debts expense. On December 31 of the current year an aging analysis of accounts receivable revealed the following: Accounts Receivable $120,000 50,000 25,000 10,000 5,000 Estimated Account Age Uncollectible 31-60 days overdue. 61-90 days overdue.... Over 90 days... 1% 2% 8% 20% 50% Required: Calculate the amount of the Allowance for Doubtful Accounts that should be reported on the current year-end balance sheet. In other words your estimate based on the above data Calculate the amount of the Bad Debts Expense that should be reported on the current year's income statement, assuming that the balance of the Allowance for Doubtful Accounts on January 1 of the current year was S5,000 and the accounts receivable written off during the current year totaled $2,500 a. b