The following selected information is from Imagine Corporations partial aging schedule in fiscal year 2015....
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Accounting
The following selected information is from Imagine Corporations partial aging schedule in fiscal year 2015. To determine the adjusted allowance for doubtful accounts, the company uses each percentage of uncollectible Accounts Receivables based on different classifications of the number of outstanding days.
Number of Days Outstanding
Accounts Receivable
Estimated Percentage Uncollectible
0-30 days
$110,000
1%
31-60 days
50,000
5%
61-90 days
20,000
20%
Over 90 days
12,500
50%
Total
$192,500
A ) The unadjusted balance in Allowance for Doubtful Accounts is a credit balance of $5,000 at the end of the year of 2015. In the following year of 2016, $3,000 of the outstanding receivables is determined to be uncollectible. Subsequent to the write-off of accounts receivables in 2016, what is the net carrying amount of Accounts Receivable?
B) The unadjusted balance in Allowance for Doubtful Accounts is a credit balance of $5,000 at the end of the year of 2015. What is the bad debt expense for the year of 2015?
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