Question: John, Inc. uses the aging method to estimate its bad debts. The information below has been collected regarding the companys outstanding customer accounts and their
John, Inc. uses the aging method to estimate its bad debts. The information below has been collected regarding the companys outstanding customer accounts and their probability of collection:
| Account Age | Probability of Non-Collection | Amount Owed |
| 0-30 days | 0.3% | $544,000 |
| 31-60 days | 1.0% | 205,700 |
| 61-90 days | 1.5% | 128,000 |
| 91-120 days | 3.0% | 75,500 |
| Over 120 days | 15.0% | 29,000 |
The balance in Johns Allowance for Uncollectible Accounts account at year-end before adjusting for a bad debt estimate is $300. Calculate the following amounts for John's Inc.:
- Expected bad debt expense
- Total balance in accounts receivable
- Net realizable value of Thomas accounts receivable
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