Question
Big Bowl, Inc. uses the aging method to estimate its bad debts. The information below has been collected regarding the company's outstanding customer accounts and
Big Bowl, Inc. uses the aging method to estimate its bad debts. The information below has been collected regarding the company's outstanding customer accounts and their probability of collection: Account Age Probability of Non-Collection Amount Owed 0-30 days 0.5% $652,800 31-60 days 1.0% 205,700 61-90 days 1.5% 128,000 91-120 days 3.0% 75,500 Over 120 days 15.0% 29,000 The balance in Big Bowl's' Allowance for Uncollectible Accounts account at year end before adjusting for a bad debt estimate is $360. Calculate the following amounts for Big Bowl, Inc.: A. Expected bad debt expense B. Total balance in accounts receivable C. Net realizable value of Big Bowl's accounts receivable
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