Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

December 31, our company had a balance of $378,000 in its accounts receivable and an unused balance of $2,340 in its allowance for uncollectible

image text in transcribedimage text in transcribed

December 31, our company had a balance of $378,000 in its accounts receivable and an unused balance of $2,340 in its allowance for uncollectible accounts. The company then analyzed the ages of its accounts as follows: Age of A/R Current Amount Bad debt estimation % Estimate $311,400 1% $3,114 1-60 days past due 43,200 5% $2,160 61-180 days past due 15,300 15% $2,295 Over 180 days past due Total 8,100 40% $3,240 $378,000 $10,809 The company continues to base its allowance for uncollectible accounts on this aging analysis and percentages. What amount of bad debts expense does the company report on its income statement for the year? Select one: a. $6,129 b. $378,000 c. $8,469 d. $10,809 e. $151,200

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: kieso, weygandt and warfield.

IFRS Edition

978-1118443965, 1118800532, 9781118800539, 978-0470873991

Students also viewed these Accounting questions

Question

If X has distribution function F(t) = 0, t Answered: 1 week ago

Answered: 1 week ago

Question

what is the signifcance of footprinting to hackers

Answered: 1 week ago

Question

Explain briefly what is meant by the stored program concept.

Answered: 1 week ago