Question
Blain Company has $17,500 of accounts receivable that are current, $8,000 that are from 0 to 30 days past due, $ 31 to 60 days
Blain Company has $17,500 of accounts receivable that are current, $8,000 that are from 0 to 30 days past due, $ 31 to 60 days past due, and $1,550 that are more than 60 days past due. Blain estimates that 2% of the receivable will be uncollectible, 5% of those from 0 to 30 days past due will be uncollectible, 10% of those from 31 to 60 day uncollectible, and 50% of those more than 60 days past due will be uncollectible. Just prior to recognizing uncol expense, Blain's allowance for doubtful accounts account has a $850 positive balance. Assuming Blain uses the estimate uncollectible accounts expense.
Calculate the amount of uncollectible expense.
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