ACC 158 Chapter 8 Accounts Receivable Aging Problem Beach Corporation reported the following information on its 12/31/2015 Balance Sheet: Accounts Receivable, net of $12,000 Allowance $108,000 During 2016, the following events occurred: 1. Customers purchased $450,000 in merchandise, all on credit. This merchandise had a cost of $300,000. 2. Customers returned $20,000 in merchandise to Beach. The returned merchandise had a cost of S (calculate this amount based on the implied gross profit % from transaction #1). 3. Beach received $375,000 from its customers. 4. The company's controller determined that S15,000 in accounts receivable were uncollectible and instructed the accounting department to write off these amounts because they are worthless. 5. It is now 12/31/15. Beach's controller prepares the following Accounts Receivable Aging Schedule. Record the estimate for the 2016 Bad Debt Expense based on the results of the following aging schedule: Age % Uncollectible Amount Receivable 105,000 30,000 Amount Uncollectible 5,250 4,500 5% 15% 10,000 25% 2,500 Current 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days 9,000 55% 4,950 6,000 90% 5,400 past due Total $160,000 REQUIRED: Complete the table above and record all 2016 transactions