Calculate the amount of the allowance for doubtful accounts

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Question - Fife, Inc. has the following account balances at December 31, 202X: Accounts Receivable $185,600 and Allowance for Doubtful Accounts $1,600 (credit balance). Fife uses the aging of accounts receivable to estimate bad debts. The following aging schedule reflects the situation at year-end:

Estimated Age Group Uncollectible Account Age Balance Percentage

Current $96,000 2.0

1-30 days past due 64,000 5.0

31-60 days past due 16,000 15.0

61-90 days past due 6,400 35.0

Over 90 days past due 3,200 45.0

Required -

(1) Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31, 202X, balance sheet.

(2) Prepare the journal entry to record 202X bad debts expense.

Reference no: EM132995838

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