Estimating Uncollectible Accounts and Reporting Accounts Receivable:

Collins Company analyzes its accounts receivable at December 31 and arrives at the age categories below along with the percentages that are estimated as uncollectible. The balance of the allowance for uncollectible accounts is $1,100 on December 31, before any adjustments.

Age Group	Accounts Receivable	Estimated Loss %
0-30 Days Past Due	$110,000	1%
31-60 Days Past Due	$40,000	2%
61-120 Days Past Due	$27,000	5%
121-180 Days Past Due	$14,000	10%
Over 180 Days Past Due	$9,000	25%
Total A/R	$200,000

a. What amount of bad debts expense will Collins report in its income statement for the year if the Allowance Account was "overdrawn" by $1,100?

b. Say in the next year on Jan 31st, a write-off of $1,700 occurs. What would be the values for Gross Accounts Receivable,

the Allowance account and Net Accounts Receivable at the end of January after the write-off.

(Assume no other events occurred in between Dec 31st and Jan 31st)

Use the financial statement effects template to record the write-off for the year.