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) 130 days old, $11.400 (2) 31-90 days old, $4,400, and (3) inore 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 312 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 312 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. 1-30 31-90 >90 Total Accounts Receivable Estimated Uncollectible (96) Estimated Uncollectible (5) Required 2 > 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) 1-30 days old, $11,400, (2) 31-90 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 312 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What amount of Bad Debt Expense should be recorded on December 317 Amount of Bad Debt Exponse 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: (0) 1-30 days old. $11.400; (2) 31-90 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 312 3. If the unadjusted balance in the Allowance for Doubtful Accounts was a $500 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. Required 1 Required 2 Required 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 312 Amount of Bad Dobt Expense
