Age Group Amount Estimated Percent Uncollectible Estimated Allowance 0-30 days $ 420,000 2 % $ 8,400 31-60 days 140,000 5 % 7,000 61-120 days 100,000 10 % 10,000 Over 120 days 120,000 20 % 24,000 Allowance for uncollectible accounts $ 49,400 The company has a pre-adjustment credit balance of $5,000 in its Allowance for Uncollectible Accounts at December 31, Year 2. Using the balance sheet approach, what amount of Bad Debt Expense should Glenview report for Year 2?

Question

Braden Davenport

Business

21 January, 18:00

Age Group Amount Estimated Percent Uncollectible Estimated Allowance 0-30 days $ 420,000 2 % $ 8,400 31-60 days 140,000 5 % 7,000 61-120 days 100,000 10 % 10,000 Over 120 days 120,000 20 % 24,000 Allowance for uncollectible accounts $ 49,400 The company has a pre-adjustment credit balance of $5,000 in its Allowance for Uncollectible Accounts at December 31, Year 2. Using the balance sheet approach, what amount of Bad Debt Expense should Glenview report for Year 2?

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Eliza · Answer 1

Bad debts expenses for the year $ 44,400

Explanation:

Computation of Bad debts expenses for the year

Estimated uncollectible accounts based on ageing of receivable $ 49,400

Pre adjustment credit balance-allowance for uncollectible account $ 5,000

Bad debts expenses for the year $ 44,400