The aging schedule at December 31, 2020, for Gidget Inc. shows the following breakdown of total...

Transcribed Image Text:

The aging schedule at December 31, 2020, for Gidget Inc. shows the following breakdown of total accounts receivable. Status Not past due Past due 1-30 days Past due 31-60 days Past due over 60 days Total Amount $455,000 $108,000 $55,000 $14.000 $632,000 The company considers the risk of credit losses to be similar within the aging pools and estimates the following credit loss rates by pool: not past due, 0.5%; past due 1-30 days. 1% past due 31-60 days, 2 %; and past due over 60 days. 8 %, The Allowance for Doubtful Accounts (allowance for credit losses) has a $3,300 credit balance before adjustment. What amount is debited to Bad Debt Expense (Credit Loss Expense) to adjust the Allowance for Doubtful Accounts (allowance for credit losses) to its desired ending balance on December 31, 2020? The aging schedule at December 31, 2020, for Gidget Inc. shows the following breakdown of total accounts receivable. Status Not past due Past due 1-30 days Past due 31-60 days Past due over 60 days Total Amount $455,000 $108,000 $55,000 $14.000 $632,000 The company considers the risk of credit losses to be similar within the aging pools and estimates the following credit loss rates by pool: not past due, 0.5%; past due 1-30 days. 1% past due 31-60 days, 2 %; and past due over 60 days. 8 %, The Allowance for Doubtful Accounts (allowance for credit losses) has a $3,300 credit balance before adjustment. What amount is debited to Bad Debt Expense (Credit Loss Expense) to adjust the Allowance for Doubtful Accounts (allowance for credit losses) to its desired ending balance on December 31, 2020?

Answer rating: 100% (QA)

To calculate the amount that needs to be debited to bad debt expenses credit loss expense to adjust ... View the full answer