Reporting Uncollectible Accounts and Accounts Receivables

Mohan Company estimates its uncollectible accounts by aging its accounts receivable and applying percentages to various aged categories of accounts. Mohan computes a total of $2,100 in estimated losses as of December 31, 2019. Its Accounts Receivable has a balance of $98,000, and its allowance for Uncollectible Accounts has an unused balance of $500 before adjustment at December 31, 2019.

a. What is the amount of bad debts expense that Mohan will report in 2019? $ 1.600 v b. Determine the net amount of accounts receivable reported in current assets at December 31, 2019. $ 95,900 V c. Set up T-accounts for both Bad Debt Expense and for Allowance for Uncollectible Accounts. Enter any beginning balances and effects from the information above (includingyour results from parts a and b). Bad Debts Expense Allowance for Doubtful Accounts