Presented below is an aging schedule for Bravo Wholesale Food Company on December 31, 2024. Bravo sells all its goods on account with terms n/7.

Instructions
a. Using the above aging schedule, determine the total estimated uncollectible accounts at December 31, 2024.
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, 2024.
d. What amount will be reported on the income statement for the year ended December 31, 2024, 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.

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Customer Aaron Bosch Clever DuPont Other 16,000 Number of days outstanding 61-90 Total 1-7 $ 18,000 $ 3,000 $10,000 60,000 40,000 26,000 5,000 5,500 119,000 $228,500 8-30 31-60 $5,000 20,000 55,000 15,000 $74,000 $70,000 1% 4% $ 5,000 32,000 $25,000 $37,000 Estimated percentage uncollectible Total estimated bad debts At December 31, 2024, the unadjusted balance in Allowance for Doubtful Accounts is a debit of $6,500. 8% Over 90 18% $ 5,500 17,000 $22,500 40%