PO Evans Shielding Products (ESP) uses the aging method for its accounts receivable. On January 1, 2020, the balance in the allowance for doubtful accounts was 517.000 For the year anded December 31, 2020, ESP made $1,642.000 of credit sales, wrote of $25.000 of accounts as uncollectible, recovered $5,000 on an account previously written off and 5383.000 remained outstanding at year and On January 1, 2020, ESP received a promissory note from a customer in exchange for a large purchase of goods from ESP The note pays interest at 5% annually, matures on December 31, 2022. and will pay ESP 5160 000 uport maturity. The market yield for this type of note is 10% During 2020. ESP factored $220.000 of its receivables without recourse for net proceeds of 5181,000 The accompanying table is the aging schedule for ESP's receivables (Click the icon to see the table.) Resured Requirement a. Determine ESP's bad debts expense for 2020 To determine Bad debts expense (BDE), Tirse determine the Allowance for doubtful accounts (ADA) using the aging schedule Days outstanding from invoice date 0.30 days 31.90 days >90 days Total Balance outstanding. December 31 2020 5 275,000 5 80,000 28.000 5 383.000 Estimated default rate 15 294 3% Allowance for bad debts 2750 1600 840 5 Net datermine the amount of BDE El the values given or previously determined, and the balance this account Leave any caused calisman -X 10 20 ESP factors 1220.000 of its receivables without conformace of 5181000 paying table is the wingedule for the icon to see the table Table 1 enta. Determine ESP's bad debit ex mine Haddebito experie (BDE) first date Days outstanding from Fustanding Dec 11 229 1 outstanding from invoice date Estimated default tanding December 31, 2020 5 aaditanan) noe for had det in the munt of BDE Entor at the longen moet Allowance for Dolccount 0-10 days 275.000 5 20.000 1 10.000 24 Done from any ist or enter any number in the inputs and the core o uso O RI Type here to search