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, $12,700; (2) 31 to 90 days old, $5,700; and (3) more than 90 days old, $3,700. For each age group, the average loss rate on the amount of the receivable due to uncollectibility is estimated to be (1) 5 percent, (2) 10 percent, and (3) 15 percent, respectively. At December 31 (end of the current year), the Allowance for Doubtful Accounts balance was $870 (credit) before the end-of-period adjusting entry is made. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. Accounts Receivable Estimated Uncollectible (%) 1 to 30 31 to 90 Over 90 Total $ 0 Estimated Uncollectible ($) What amount of Bad Debt Expense should be recorded on December 31? Amount of Bad Debt Expense $ 0 If the unadjusted balance in the Allowance for Doubtful Accounts was a $670 debit balance, what amount of Bad Debt Expense should be recorded on December 31? Amount of Bad Debt Expense