Question
Accounts Receivable Aging Method 1. Quebec Market reports the following analysis of potential losses in its accounts receivable: Age Past Due Receivable Balance Estimated Loss
Accounts Receivable Aging Method
1. Quebec Market reports the following analysis of potential losses in its accounts receivable:
Age Past Due Receivable Balance Estimated Loss (%)
0-30 days past due $67,200 0.5%
31-60 days past due 30,000 1.8%
61-90 days past due 18,000 4.3%
Over 90 days past due 3,300 45.5%
Total $118,500
The balance of Allowance for Doubtful Accounts is $600 credit balance on December 31, 2019 prior to adjustments.
Required:
a. Compute bad debts expense that will be recorded for 2019. (Round to nearest whole dollar.)
b. What is the amount of net accounts receivable to be reported on Quebec Markets December 31, 2019 balance sheet?
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