Question
ZING, Inc. uses the aging method to estimate its bad debts.The information below has been collected regarding the company's outstanding customer accounts and their probability
ZING, Inc. uses the aging method to estimate its bad debts.The information below has been collected regarding the company's outstanding customer accounts and their probability of collection:
Account Age -Probability of Non-Collection-Amount Owed
0-30 days-0.3%- $1,089,000
31-60- days -1.0%- 411,500
61-90- days 1-.5%- 256,600
91-120 -days -3.0%- 151,000
Over 120 days -15.0% -58,000
The balance in ZING's Allowance for Uncollectible Accounts account at year end before adjusting for a bad debt estimate is $600.Calculate thebad debt expensefor ZING, Inc. for the current year.
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