Reporting Uncollectible Accounts and Accounts Receivables

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,l 00 in estimated losses as of December31, 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 (including your results from parts a and b). Bad Debts Expense Allowance for Doubtful Accounts 98,000 x Bal. 1,600 V