Question
Preparing an Aging Schedule M. Beall Inc. uses the aging method to estimate the company's bad debt expense. Mike Beall, the president of the company,
Preparing an Aging Schedule
M. Beall Inc. uses the aging method to estimate the company's bad debt expense. Mike Beall, the president of the company, collected information about the company's outstanding accounts receivable and their probability of collection:
Account Age
AmountProbability of
Non-Collection0-30 days$750,0000.5%31-60 days275,0001.5%61-90 days170,0002.5%91-120 days100,0004.0%Over 120 days40,00020.0%
a. Calculate the expected bad debt expense for M. Beall, Inc. Round to the nearest whole number.
$Answer
b. Calculate the total balance in accounts receivable.
$Answer
c. Calculate the net realizable value of the company's accounts receivable.
$Answer
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