Question
Mike Beal collected the following information about his company's outstanding accounts receivable and their probability of collection. use the aging method to calculate the company's
Mike Beal collected the following information about his company's outstanding accounts receivable and their probability of collection. use the aging method to calculate the company's bad debt expense. Account age 0-30 days amount 725,000 and probability of non collection 0.50%, account age 31-60 days amount 275,000 and probability of non collection 1.50%, account age 61-90 days amount 170,000 and probability of non collection 2.50%, account age 91-120 days amount 100,000 and probability of non collection 4.00%, and accounts over 120 days amount is 40,000 with a probability of non collection of 20.00%. Calculate the expected bad debt expense for M, Beall Inc, calculate the total accounts receivable, and calculate the net realization value of accounts receivable.
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