E8-7 Computing Bad Debt Expense Using Aging of Accounts Receivable Method [LO 8-2] 11.31 points Brown Cow Dalry 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, $12,500, (2) 31--90 days old, $5,500; and (3) more than 90 days old, $3,500. 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 $850 (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 317 3. If the unadjusted balance in the Allowance for Doubtful Accounts was a $650 debit balance, what amount of Bad Debt Expense should be recorded on December 312 Book Hint Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required a Prepare a schedule to estimate an appropriate year end balance for the Allowance for Doubtful Accounts 1-30 31-00 90 Total Accounts Receivable Estimated Uncollectible (%) Emated Uncollectible (5) E8-7 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) 1-30 days old, $12,500: (2) 31-90 days old, $5,500, and (3) more than 90 days old, $3,500. 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 $850 (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 $650 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 What amount of Bad Debt Expense should be recorded on December 317 Amount of Bad Debt Expense E8-7 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)1-30 days old, $12,500 (2) 31-90 days old, $5,500; and (3) more than 90 days old, $3,500. For each age group, the average loss rate on the amount of the receivable due to uncollectiblity 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 $850 (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 Bed Debt Expense should be recorded on December 312 3. If the unadjusted balance in the Allowance for Doubtful Accounts was a $650 debit balance, what amount of Bad Debt Expense should be recorded on December 31? at Complete this question by entering your answers in the tabs below. erences Required 1 Required 2 Required Bet If the unadjusted balance in the Allowance for Doubtful Accounts was a $650 debit balance, what amount of Bad Debt Expense should be recorded on December 31? Amount of Bad Debt Expense