Question: E6-13 (Algo) Computing Bad Debt Expense Using Aging Analysis LO6-2 Un's Dairy uses the aging approach to estimate bad debt expense. The ending balance of
E6-13 (Algo) Computing Bad Debt Expense Using Aging Analysis LO6-2 Un's Dairy uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due. $17.500 (2) up to 120 days past due, $6,600, and (3) more than 120 days past due, $4,200. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is ( 2 percent. (2) 15 percent, and (3) 34 percent, respectively. At the end of the current year, the Allowance for Doubtful Accounts balance is $900 (credit before the end of period adjusting entry is made Required: What amount should be recorded as Bad Debt Expense for the current year? (Enter your answers as a whole percentage e., 0.12 should be entered as 121) Aged Accounts Receivable Estimated Percentage Estimated Amount Not yet due Up to 120 days paste Over 120 days past due
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