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The following data were taken from the Accounts Receivable account of Mountain Trips, Inc.'s as of December 31: Probability of Non-Collection Account Age 0-10 days
The following data were taken from the Accounts Receivable account of Mountain Trips, Inc.'s as of December 31: Probability of Non-Collection Account Age 0-10 days 11-30 days 31-60 days 61-90 days 91-120 days Over 120 days Amount Owed 1.0% 1.5% 3.0% 5.0% $52,500 302,000 152,500 13,700 5,000 1,000 80.0% A balance of $500 existed in the Allowance for Uncollectible Accounts account as of the beginning of the year. A. Determine the amount of bad debt expense to be recorded at year-end by the company under the aging method. B. Calculate the net realizable value of Mountain Trips, Inc.'s accounts receivable at year-end
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