Assignment 8 Problem 8-3A CHECK FIGURE: 2. Bad Debt Expense- $60,205 On December 31, 2017, Toro Company's Allowance for Doubtful Accounts had an unadjusted credit balance of $31,000. The accountant for Toro has prepared a schedule of the December 31, 2017, accounts receivable by age and, on the basis of past experience, has estimated the percentage of the receivables in each age category that wil become uncollectible. This information is summarized as follows: Expected Percentage December 31, 2017 Accounts Receivable $1,500,000 708,000 152,000 48,000 24,000 Age of Aocounts Recelvable Not due (under 30 deys) 1 to 30 days past due 31 to 60 deys past due 61 to 40 days past due Over 90 days past due 1.25 2.00 6.50 32.75 68.00 Required 1. Calculate the amount that should appear in the December 31, 2017, balance sheet as the allowance for doubtful accounts. (16 Marks) 2. Prepare the journal entry to record bad debt expense for 2017. (10 Marks) Analysis Component: On June 30, 2018, Toro Company concluded that a customer's $7,500 receivable (created in 2017) was uncollectible and that the account should be written off. What effect will this action have on Toro's 2018 profit? Explain your answer. (14 Marks)