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

Age Group	Accounts Receivable	Estimated Loss %
0-30 days past due	$ 80,000	1%
31-60 days past due	20,000	2
61-120 days past due	14,000	5
121-180 days past due	6,000	10
Over 180 days past due	4,000	25
Total accounts receivable	$ 124,000

The unused balance of the allowance for uncollectible accounts is $450 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.

	Balance Sheet
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contributed Capital	+	Earned Capital
Record bad debt 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