Topic: Accounts Receivable Aging Method 4. At December 31, 2016, Luna Toys had a balance of $165,400 in its Accounts Receivable account and a credit balance of $600 in its Allowance for Doubtful Accounts account. Luna Toys analyzed and aged its accountsreceivable based on the following estimated uncollectible amounts: Age of Account Current 31 to 60 day 61 to 90 days Over 91 days Total Receivables Balance $ 87,000 44,200 17,800 Estimated % Uncollectible 0.6% 2.0% 5.5% 21.0% The company bases its provision for credit losses on the aging analysis Required: a. What amount of bad debt expense will Luna Toys report in its 2016 income statement? b. How would Accounts Receivable and the Allowance for Doubtful Accounts appear in its December 31, 2016, balance sheet? Topic: Accounts Receivable Aging Method 5. Victoria Market reports the following analysis of potential losses in its accounts receivable Receivable Estimated Age Past Due 0-30 days past due 31-60 days past duee 61-90 days past due Over 90 days past due Total Balance $44,800 20,000 12,000 2.200 Loss (% 0.5% 1.8% 4.3% 45.5% The balance of Allowance for Doubtful Accounts is $400 credit balance on December 31, 2016 prior to adjustments. Required: a. Compute bad debts expense that will be recorded for 2016 b. What is the amount of net accounts receivable to be reported on Victoria Market's December 31 2016 balance sheet