Ache Company has organized its accounts receivable by customer and how long each receivable has...
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Ache Company has organized its accounts receivable by customer and how long each receivable has been outstanding. Ache records bad debt expense of an analysis of an aged schedule. The flowing information is as of the end of the years (December 31) Days Past Due 31-60 d Over 60 days Customer # 10901 10902 10903 10904 10905 10906 Total Total Due Current 1-30 days 70,000 60,000 10,000 50,000 150,000 60,000 170,000 30,000 50,000 110,000 10,000 20,000 20,000 20,000 20,000 $ 10,000 10,000 $ 20,000 $ 20,000 $ 20,000 490,000 $350,000$100,000 2% 5% 30% 95% % uncollectable At the beginning of the year, Ache has accounts receivable of $500,000 and a credit balance of $30,000 in its allowance for uncollectable accounts. During the year, it wrote off specific accounts receivable in the amount of $80,000. Assume no recoveries of write-offs during the year. Required a. Compute the bad debt expense for the year ending December 31 b. Compute the net realizable value of Ache's accounts receivable at December 31, c. Prepare the journal entry to record the bad debt expense for the year
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