Question
Reporting Uncollectible Accounts and Accounts Receivable LaFond Company analyzes its accounts receivable at December 31, 2016, and arrives at the aged categories below along with
Reporting Uncollectible Accounts and Accounts Receivable
LaFond Company analyzes its accounts receivable at December 31, 2016, and arrives at the aged categories below along with the percentages that are estimated as uncollectible.
Age Group | Accounts Receivable | Estimated Loss % |
---|---|---|
Current (not past due) | $250,000 | 0.30% |
1-30 days past due | 90,000 | 1.0 |
31-60 days past due | 20,000 | 2.0 |
61-120 days past due | 11,000 | 5.0 |
121-180 days past due | 6,000 | 10.0 |
Over 180 days past due | 4,000 | 25.0 |
Total accounts receivable | $381,000 |
At the beginning of the fourth quarter of 2016, there was a credit balance of $4,380 in the Allowance for Uncollectible Accounts. During the fourth quarter, LaFond Company wrote off $3,800 in receivables as uncollectible. a. What amount of bad debts expense will LaFond report for 2016? $Answer b. What is the balance of accounts receivable that it reports on its December 31, 2016, balance sheet? $Answer c. Set up T-accounts for both Bad Debts Expense and for the Allowance for Uncollectible Accounts. Enter any unadjusted balances along with the dollar effects of the information described (including your results from parts a and b).
Bad Debts Expense | |||
---|---|---|---|
(a) | Answer | Answer | |
Balance | Answer | Answer |
Allow. For Uncoll. Accounts | |||
---|---|---|---|
Beg. Bal. | Answer | Answer | |
Write-off | Answer | Answer | |
(a) | Answer | Answer | |
Balance | Answer | Answer |
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