Brown Cow Dairy uses the aging approach to estimate Bad Debt Expense. The balance of each account receivable is aged on the basis of three time periods as follows: (1) 1 to 30 days old, $11,400; (2) 31 to 90 days old, $4,400; and (3) more than 90 days old, $2,400. For each age group, the average loss rate on the amount of the receivable due to uncollectibility is estimated to be (1) 6 percent, (2) 11 percent, and (3) 20 percent, respectively. At December 31 (end of the current year), the Allowance for Doubtful Accounts balance was $740 (credit) before the end-of-period adjusting entry is made. Required: 1. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. 2. What amount of Bad Debt Expense should be recorded on December 31 ? 3. If the unadjusted balance in the Allowance for Doubtful Accounts was a $540 debit balance, what amount of Bad Debt Expense should be recorded on December 31 ? Complete this question by entering your answers in the tabs below. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. days old, $4,400; and (3) more than 90 days old, $2,4 amount of the receivable due to uncollectibility is estit percent, respectively. At December 31 (end of the curr balance was $740 (credit) before the end-of-period ac Required: 1. Prepare a schedule to estimate an appropriate year. 2. What amount of Bad Debt Expense should be recori 3. If the unadjusted balance in the Allowance for Doub of Bad Debt Expense should be recorded on Decem Complete this question by entering your answers in the tabs What amount of Bad Debt Expense should be recorded on December 3 Brown Cow Dairy uses the aging approach to estimate Bad Debt Expense. The balance of each accour receivable is aged on the basis of three time periods as follows: (1) 1 to 30 days old, $11,400;(2)31 to 90 days old, $4,400; and (3) more than 90 days old, $2,400. For each age group, the average loss rate on amount of the receivable due to uncollectibility is estimated to be (1) 6 percent, (2) 11 percent, and (3) 20 percent, respectively. At December 31 (end of the current year), the Allowance for Doubtful Accounts balance was $740 (credit) before the end-of-period adjusting entry is made. Required: 1. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Acco 2. What amount of Bad Debt Expense should be recorded on December 31 ? 3. If the unadjusted balance in the Allowance for Doubtful Accounts was a $540 debit balance, what am of Bad Debt Expense should be recorded on December 31 ? Complete this question by entering your answers in the tabs below. If the unadjusted balance in the Allowance for Doubtful Accounts was a $540 debit balance, what amount of Bad Debt Expense should be recorded on December 317
