How do you answer a, b, and c? E6-34. Reporting Uncollectible Accounts and Accounts...
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How do you answer a, b, and c?
E6-34. Reporting Uncollectible Accounts and Accounts Receivable LaFond Company analyzes its accounts receivable at December 31,2016, and arrives at the aged categories below along with the percentages that are estimated as uncollectible. Age Group Accounts Receivable Estimated Loss % 0.5% 1-30 days past due 31-60 days past due .. 61-120 days past due $250,000 90,000 20,000 11,000 6,000 4,000 2 5 10 25 Over 180 days past due . Total accounts receivable .. . . $381,000 At the beginning of the fourth quarter of 2016, there was a credit balance of $4,350 in the Allowance for Uncollectible Accounts. During the fourth quarter, LaFond Company wrote off $3,830 in re- ceivables as uncollectible. What amount of bad debts expense will LaFond report for 2016? What is the balance of accounts receivable that it reports on its December 31, 2016, balance a. b. sheet? Set up T-accounts for both Bad Debts Expense and for the Allowance for Uncollectible Accounts. Enter any unadjusted balances along with the dollar effects of the information described (includ- ing your results from parts a and b). Explain the numbers in each of the T-accounts C
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How do you answer a, b, and c?