E8-6 (Algo) Computing Bad Debt Expense Using Aging of Accounts Receivable Method [LO 8-2] Young and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered young and have a 3% uncollectible rate. Accounts more than 60 days are considered old and have a 40% uncollectible rate. Required: 1. If YOC has $102,000 of young accounts and $420,000 of old accounts, how much should be reported in the Allowance for Doubtful Accounts? 2. If YOC's Allowance for Doubtful Accounts currently has an unadjusted credit balance of $42,000, how much should be credited to the account? 3. If YOC's Allowance for Doubtful Accounts has an unadjusted debit balance of $5,200, how much should be credited to the account? 1. Amount to be Reported 2. Amount to be Credited 3. Amount to be Credited 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 $680 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 Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. 1 to 30 31 to 90 Over 90 Total Accounts Receivable $ 0 Estimated Uncollectible (%) Estimated Uncollectible ($) 0 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 $680 debit balance, what amount of Bad Debt Expense should be recorded on December 31? Amount of Bad Debt Expense E8-7 (Algo) Computing Bad Debt Expense Using Aging of Accounts Receivable Method [LO 8-2] 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 to 30 days old, $12,800; (2) 31 to 90 days old, $5,800; and (3) more than 90 days old, $3,800. For each age group, the average loss rate on the amount of the receivable due to uncollectibility is estimated to be (1) 4 percent, (2) 12 percent, and (3) 15 percent, respectively. At December 31 (end of the current year), the Allowance for Doubtful Accounts balance was $880 (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 $680 debit balance, what amount of Bad Debt Expense should be recorded on December 31