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4. At December 31, 2016, Luna Toys had a balance of $165,400 in its Accounts Receivable account and a credit balance of $600 in its
4. At December 31, 2016, Luna Toys had a balance of $165,400 in its Accounts Receivable account and a credit balance of $600 in its Allowance for Doubtful Accounts account. Luna Toys analyzed and aged its accounts receivable based on the following estimated uncollectible amounts: Receivables Age of Accounts Current 31 to 60 day 61 to 90 days Over 91 days Total Estimated % Uncollectible 0.6% 2.0% 5.5% 21.0% Balance $ 87,000 44,200 17,800 16,400 $165400 The company bases its provision for credit losses on the aging analysis Required a. What amount of bad debt expense will Luna Toys report in its 2016 income statement b. How would Accounts Receivable and the Allowance for Doubtful Accounts appear ir December 31,2016, balance sheet
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