xt-T Blackboard at Fresno s ×y D CH 8 Assignment ?D Check Yo O ezto.mheducation.
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xt-T Blackboard at Fresno s ×y D CH 8 Assignment ?D Check Yo O ezto.mheducation.com/hm.tpx Brown Cow Dairy uses the aging approach to estimate Bad Debt Expense. The balance of each account vable is aged on the basis of three time periods as follows: (1) 1-30 days old, $ 3) more than 90 days old, $2,400. Experience has shown that for each age group, the loss rate on the amount of the receivable due to uncollectibility is (1) 6 percent, (2) 11 percent, and At December 31 (end of the current year), the Allowance for Doubtful Accounts (3) 20 percent, respectively. balance was $740 (credit) before the end-of-period adjusting entry is made. Required to estimate an appropriate year-end balance for the Alowance for Doubtful Accounts. 1-30 31-90 > 90 Total Estimated Uncollectible (96) Estimated Uncollectible ($) 2. What amount of Bad Debt Expense should be recorded on December 31? nount of Bad Debt Expense If the unadjusted balance in the Allowance for Doubtful Accounts was a $540 debit balance, what amount of Bad Debt Expense should be recorded on December 31? 3. Amount of Bad Debt Expense TEAM EVALUATION F.. ooxCHB PPI)(2)pptx CH8 PP(1) (11.pptx PP(1) (3) pptxExplanation / Answer
Answer 1 Schedule to estimate an appropriate year end balance for the Allowance for Doubtful accounts 1-30 31-90 > 90 Total Accounts Receivable $11,400.00 $4,400.00 $2,400.00 $18,200.00 Estimated Uncollectible (%) 6% 11% 20% Estimated Uncollectible $684.00 $484.00 $480.00 $1,648.00 Answer 2 Amount of bad debt expense should be recorded on Dec.31 Bad debt expense = Estimated Uncollectible - Credit balance of Allowance for Doubtful accounts = $1648 - $740 = $908 Answer 3 Bad debt expense = Estimated Uncollectible + Debit balance of Allowance for Doubtful accounts = $1648 + $540 = $2188
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