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Goliath Company uses the aging approach to estimate bad debt expense. The total Accounts Receivable balance at year end is $94 500. The balance of
Goliath Company uses the aging approach to estimate bad debt expense. The total Accounts Receivable balance at year end is $94 500. The balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due S3, 000 (2) up to 180 days past due, $54, 000 and (3) more than 180 days past due $3, 500 Experience has shown that for each age group, the average loss rate on the amount on the receivables at year-end due to uncollectability is (1)6 percent, (2) 11 percent and (3) 23 percent, respectively. At December 31, 2015 (end of the current year), the Allowance for Doubtful Accounts balance is $500 (credit) before the end-of-period adjusting entry is made Prepare the appropriate bad debt expense adjusting entry for the year 2015
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