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You have the following information about the receivables of a firm (you may not need all of this information): Year 2019 Year 2018 Accounts Receivable
You have the following information about the receivables of a firm (you may not need all of this information): Year 2019 Year 2018 Accounts Receivable (Gross) ending balance 24,000 22,000 Allowance for Uncollectibles ending balance ? 2,100 Credit Sales Revenues for the year 69,000 64,000 Bad Debt Expense for the year ? 3,100 Actual write-offs due to defaults for the year 1,900 2,700 This firm follows the aging methodology and the Aging Schedule for 2019 is as follows: Age of Receivable Amount $ Estimated Uncollectibility 0-30 days 10,000 2% 31-60 days 5,000 6% 61-90 days 7,000 10% > 90 days 2,000 30% What should this firm report as the ending balance of the Allowance for Uncollectibles on the 2019 Balance Sheet (i.e., what will be the amount that will be offsetting the Gross Accounts Receivable to get to Net Accounts Receivable)? What should this firm recognize as the Bad Debt Expense on the Income Statement in 2019
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