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E5-44 complete part A and B E5-44. Estimating Bad Debts Expense and Reporting Receivables At December 31, Barber Company had a balance of $420,000 in
E5-44 complete part A and B E5-44. Estimating Bad Debts Expense and Reporting Receivables At December 31, Barber Company had a balance of $420,000 in its accounts receivable and an unused ba) ance of $2,600 in its allowance for uncollectible accounts. The company then aged its accounts as follows LOS Current 1-60 days past due $346,000 48,000 . past due. Total accounts receivable. The company has experienced losses as follows: 1% of current balances, 5% of balances l-60 days past due, 15% of balances 61-180 days past due, and 40% of balances over 180 days past due. The company continues to base its allowance for uncollectible accounts on this aging analysis and percentages. a. What amount of bad debts expense does Barber report on its income statement for the year? b. Show how Barber's December 31 balance sheet will report the accounts receivable and the allowance for uncollectible accounts
E5-44 complete part A and B
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