Amazing Company has the following information available as of December 31, 2017:

Total

Accounts 1-30 31-60 61-90 Over 90

Receivable Days Days Days Days

90,000 73,400 9,400 4,700 2,500

Total credit sales for the year ended December 31, 2017, were 825,000.

The balance in the Allowance for Uncollectible Accounts at December 31, 2016, is 7000 and

the company wrote-off 1200 during 2017. The estimated bad debts percentages (as a

percentage of aging accounts receivable) are as follows:

1-30 days 3%

31-60 days 15%

61-90 days 35%

Over 90 days 75%

i. Calculate an estimate of bad debt expense that the company should recognize for the year

if it estimates bad debts using ageing schedule method.

ii. Please also record the transaction for recognizing bad debt expense.

iii. What would be the net accounts receivable reported on the balance sheet prepared on December 31,2017