E8-7 (Algo) Computing Bad Debt Expense Using Aging of Accounts Receivable Method [LO 8-2] Brown Cow Dairy uses the aging approach to estimate Bad Debt Expense. The balance of each account receivable is aged on the basis of three time periods as follows: (1)1 to 30 days old. $12.200: 2) 31 to 90 days old, $5,200, and (3) more than 90 days old, $3,200. For each age group, the average loss rate on the amount of the receivable due to uncollectibility is estimated to be (1) 4 percent. (2) 12 percent, and (3) 15 percent, respectively At December 31 (end of the current year), the Allowance for Doubtful Accounts balance was $820 (credit) before the end-of-period adjusting entry is made. Required: 1. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts: 2. What amount of Bad Debt Expense should be recorded on December 31 3. If the unadjusted balance in the Allowance for Doubtful Accounts was a $620 debit balance, what amount of Bad Debt Expense should be recorded on December 31 Prepare a schedule to esun te dal 1 to 30 31 to 90 Over 90 Total Accounts Receivable Estimated Uncollectible %) Estimated Uncollectible ($) Required 1 Required 2 Required 3 What amount of Bad Debt Expense should be recorded on December 31? Amount of Bad Debt Expense Required 1 Required 2 Required 3 Required 3 If the unadjusted balance in the Allowance for Doubtful Accounts was a $620 debit balance, what amount of Bad Debt Expense should be recorded on December 317 Amount of Bad Dobt Expense