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A company uses the aging schedule of its accounting receivable at year end to estimate the allowances for uncollectible accounts. The following is the aging
A company uses the aging schedule of its accounting receivable at year end to estimate the allowances for uncollectible accounts. The following is the aging schedule prepared at the end of the year 2019 based on information determined by the board. Age Amount Uncollectible percentage 1 - 30 days $120,000 3% 31 - 60 days $140,000 8% 61 - 90 days $70,000 12% 91 - 120 days $30,000 20% Over 120 days $4,500 100% The credit balance of the allowance account before any adjustment for the above information was $4,000. Answer the following questions: 1- What amount of bad debt expense will be reported on the income statement for the year 2019? 2- What is the balance of the allowance account to be reported on the balance sheet at the end of the 2019? 3- What is the net realizable value of accounts receivable to be reported on the balance sheet as of December 31, 2021
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