Paragraph Question 6: Accounts Receivable (12 Marks) Styles Mountain Corp. is a manufacturing company for mountain bikes. Given the current economic downturn, the Company is having increased trouble collecting its accounts receivable from retailers. The total sales for the year were $860,000. Of these sales, $800,000 were credit sales H Allowance for Doubtful Accounts is at a credit balance of 4,000. The company uses the Aging of Accounts receivable method (Balance Sheet Approach) You were provided the following additional information: Age of Accounts Receivable Current Accounts Estimated Percent Uncollectible Amount $100,000 2% 1-30 days 88,000 4% 31-60 17.000 6% 61-90 24,000 22% Over 90 days 8,000 42% Total Accounts Receivable $237.000 Required: at Calculate the bad debt expense using the Aging of Accounts Receivable method (3) Marks) Show calculations. Bad Debt Expense at December 31, 2020 = Calculations S b) Calculate the ending balance of Allowance for Doubtful Accounts. (2 Marks) Allowance for Doubtful Accounts at December