Question

ACCOUNTS RECEIVABLE C-Market reports the following analysis of potential losses in its accounts receivable for the vear 2018. Receivable Balance 0-30 days past dueS89,600 31-60 days past due 39,200 24,400 Estimated Loss (%) 1.0% 3.6% 8.6% Age Past Due 61-90 days past due Over three months 4,400 $157 600 91.0% past due Total The credit balance of Allowance for Uncollectible Accounts is $975 as of December 31, 2018 [that is prior to adjustments A. Compute bad debt t expense recorded for 2018. B. what is the net amount of accounts receivable to be reported on C-Market's December 31, 2018 balance sheet?

The credit balance of Allowance for Uncollectible Accounts is $975 as of December 31, 2018 [that is prior to adjustments].

A. Compute bad debt expense recorded for 2018.

B. What is the net amount of accounts receivable to be reported on C-Market’s December 31, 2018 balance sheet?

Answer 1

a) Bad debt expense :

	Amount	% Uncollectible	Amount uncollectible
0-30 Days	89600	1%	896
31-60 days	39200	3.6%	1411.20
61-90 days	24400	8.6%	2098.40
Over three months	4400	91%	4004
Total			8409.60

Bad debt expense = 8409.60-975 = $7434.60

b) Balance sheet

Current assets
Account receivable	157600
Less: Allowance for doubtful accounts	-8409.60
	149190.40