Presented below is an aging schedule for Bravo Wholesale Food Company on December 31, 2017. Bravo sells all its goods on account with terms n/7.

At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts is a
Instructions
(a) Using the above aging schedule, determine to the total estimated uncollectible accounts at December 31, 2017.
(b) Prepare the adjusting journal entry to record bad debt expense.
(c) Show how accounts receivable would be presented on the balance sheet on December 31, 2017.
(d) What amount will be reported on the income statement for the year ended December 31, 2017, for bad debt expense?
Taking It Further
To eliminate bad debt expense, should Bravo Wholesale Food Company require all of its customers to pay cash? Explain.

Transcribed Image Text:

Number of days outsta Customer Aaron Bosch Clever DuPont Other Total 831-60 $10,000 5,000 8-30 61.90 Over 90 ー 3,000 16,000 55,000 S 18,000 60,000 26,000 40,000 5,000 20,000 S 5,000 5,500 32,000 17,000 $70,000 $25,000 $37,000 S22,500 5,500 15,000 119,000 $228,500 $74,000 Estimated percentage 196 4% 8% 1896 40% Total estimated bad debts