M. Beall Inc. uses the aging method to estimate the companys bad debt expense.
Mike Beall, the president of the company, collected information about the companys outstanding accounts receivable and their probability of collection:
		Probability of
Account Age	Amount	Non-Collection
030 days	$725,000	0.50%
3160 days	275,000	1.50%
6190 days	170,000	2.50%
91120 days	100,000	4.00%
Over 120 days	40,000	20.00%
Calculate the expected bad debt expense for M. Beall, Inc.
Calculate the total balance in accounts receivable.
Calculate the net realizable value of accounts receivable.
Assume that the company decides to write-off all unpaid A/R over 120 days
How does this impact Net Realizable value of accounts receivable?