Question

please calculate blank spaces, will give thumbs up

Accounts Rec Estimated Loss 110,000 1% 27,000 5% 14,000 10% 9,000 25% 160,000 1,000 Aging 0-30 61-120 121-180 Over 180 Total Accounts Receivables 3 Balance at the beginning of the year 0 1 2 A) Bad Debt Expense 3 4 Aging 15 0-30 16 61-120 17 121-180 18 Over 180 19 Total Accounts Receivables 20 Total required balance in allowance 21 Less: Balance at the beginning of the year 22 Bad debt expense for the year 23 24 B) Financial statement effects template 25 26 27 Dad Debts Accounts Rec Estimated Loss 110,000 1% 27,000 5% 14,000 10% 9,000 25% 160,000 Cash Balance Sheet Noncash Liabil Contrib

Answer 1

SOLUTION: A
	CALCULTION OF BAD DEBT EXPENSES
	Aging	Account Receivable	Estimated Loss	Bad Debts
	0-30	$          1,10,000	1.00%	$             1,100
	61-120	$             27,000	5.00%	$             1,350
	121-180	$             14,000	10.00%	$             1,400
	Over 180	$                9,000	25.00%	$             2,250
	Total Account Receivables	$          1,60,000
	Total Required balance in Allowance			$             6,100
	Less: Balance at the beginning of the year			$             1,000
	Bad Debt Expenses of the year			$             5,100
SOLUTION: B
	Bad Debt Expenses will affect in financial statement as below
	Noncash Assets is reduced by bad debt expenses	$              -5,100
	Bad Debt expenses shown as expenses	$                5,100
	Net income will be come negative	$              -5,100
	Earned Capital will be negative for $	$              -5,100