Estimating Uncollectible Accounts and Reporting Accounts Receivable LaFond Company analyzes its accounts receivable at December...
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Estimating Uncollectible Accounts and Reporting Accounts Receivable LaFond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with the percentages that are estimated as uncollectible. Accounts Estimated Age Group Receivable Loss % 0-30 days past due $ 90,000 2% 31-60 days past due 20,000 4 61-120 days past due 11,000 10 121-180 6,000 20 Over 180 days past due 4,000 50 Total accounts receivable $ 131,000 The balance of the allowance for uncollectible accounts is $1,040 on December 31, before any adjustments. (a) What amount of bad debts expense will LaFond report in its income statement for the year? $ 2930 X (b) Use the financial statement effects template to record LaFond's bad debts expense for the year. Use negative signs with your answers, when appropriate. Balance Sheet Income Statement Noncash Assets + Liabilities Contributed Capital 0 + Earned Capital -2930 x Revenue Net Income Expenses 2930 x -2930 x 0 0 -2930 x (c) What is the balance of accounts receivable on it December 31 balance sheet? $ 127550 x
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