Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help with number 1, 2, and 3 please Brown Cow Dairy uses the aging approach to estimate Bad Debt Expense. The balance of each

image text in transcribed

need help with number 1, 2, and 3 please

Brown Cow Dairy uses the aging approach to estimate Bad Debt Expense. The balance of each account receivable is aged on the basis of three time periods as follows: (1) 1-30 days old, $11,300; (2) 31-90 days old, $4,300; and (3) more than 90 days old, $2,300. Experience has shown that for each age group, the average loss rate on the amount of the receivable due to uncollectibility is (1) 5 percent, (2) 12 percent, and (3) 20 percent, respectively. At December 31 (end of the current year), the Allowance for Doubtful Accounts balance was $730 (credit) before the end-of-period adjusting entry is made. Required 1. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful 1-30 31-90 90 Total Accounts Receivable Estimated Uncollectible (%) Estimated Uncollectible (S) 0 2. What amount of Bad Debt Expense should be recorded on December 31? Amount of Bad Debt Expense 3. If the unadjusted balance in the Allowance for Doubtful Accounts was a S530 debit balance, what amount of Bad Debt Expense should be recorded on December 31? Amount of Bad Debt Expense

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

EBay Sales Tracker Quick And Easy Bookkeeping System

Authors: Queen Thrift

1st Edition

B08KJ5FJND, 979-8692592774

More Books

Students also viewed these Accounting questions

Question

How do todays organizations diff er from those of earlier eras?

Answered: 1 week ago