Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Receivable Balance Estimated Loss (%) Custer Products reports the following analysis of potential losses in its accounts receivable: Age Past Due 0-30 days past due
Receivable Balance Estimated Loss (%) Custer Products reports the following analysis of potential losses in its accounts receivable: Age Past Due 0-30 days past due 31-60 days past due 61-90 days past due $ 70,000 0.5% 45,000 2.5% 30,000 10.0% Over three months past due 5,000 95.0% Total $150,000 The balance of Allowance for Uncollectible Accounts is a credit of $500 on December 31, 2021 prior to adjustments. What is the Bad Debts Expense for 2021 and the net realizable value of Accounts Receivable on December 31, 2021? Select one: A. Bad Debts Expense = $9,225; Net realizable value of Accounts Receivable = $140,775 B. Bad Debts Expense = $9,225; Net realizable value of Accounts Receivable = $159,225 C. Bad Debts Expense = $8,725; Net realizable value of Accounts Receivable = $159,225 D. Bad Debts Expense = $8,725; Net realizable value of Accounts Receivable = $140,775 E. Bad Debts Expense = $500; Net realizable value of Accounts Receivable = $149,500
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started