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Estimating Uncollectible Accounts and Reporting Accounts Receivable LaFond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with

Estimating Uncollectible Accounts and Reporting Accounts Receivable LaFond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with the percentages that are estimated as uncollectible.

Age Group

Accounts

Receivable

Estimated

Loss %

0-30 days past due $ 180,000 1%
31-60 days past due 40,000 2
61-120 days past due 22,000 5
121-180 12,000 10
Over 180 days past due 8,000 25
Total accounts receivable $ 262,000

The balance of the allowance for uncollectible accounts is $1,040 on December 31, before any adjustments.

(a) What amount of bad debts expense will LaFond report in its income statement for the year? $Answer (b) Use the financial statement effects template to record LaFond's bad debts expense for the year.

Use negative signs with your answers, when appropriate.

Balance Sheet

Transaction Cash Asset +

Noncash

Assets

= Liabilities +

Contributed

Capital

+

Earned

Capital

Record bad debts expense Answer Answer Answer Answer Answer

Income Statement

Revenue - Expenses = Net Income
Answer Answer Answer

(c) What is the balance of accounts receivable on it December 31 balance sheet? $Answer

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