In this form please:

4. At year-end, Chief Company has a balance of $10,000 in accounts receivable of which S1.000 is more than 30 days overdue Chief has a credit balance of $100 in the allowance for doubtful accounts before any year end adjustments. Using the aging of accounts recer method, Chief estimates that 190 of current accounts and 10% of accounts over thirty days are uncollectible. What is the amount of bad debt expense? Let's practice! Req. 1 December 31, 2010-Adjusting entry Bad debt expense (+E, -SE) Allowance for doubtful accounts (+XA, -A) 22,350 To adjust for estimated bad debt expense for 2010 computed as follows 22,350 Estimated percentage Estimated amount Aged accounts receivable Not yet due Up to 120 days past due Over 120 days past due Estimated balance in Allowance for Doubtful Accounts Current balance in Allowance for Doubtful Accounts Bad Debt Expense for the year uncollectible uncollectible $8,750 5,000 9,000 750 400 350 $250,000 x 3.5% 50,000 X 30.000x 10% 30% Req. 2 Balance sheet Accounts receivable ($250,000+$50,000 +$30,000) $330,000 Less allowance for doubtful accounts 22.750 Accounts receivable, net of allowance for doubtful accounts. $307,250 Chapter 6 6-49