What amount of bad debt expense will Mohan report

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Question - Estimating Uncollectible Accounts and Reporting Accounts Receivable

Mohan Company estimates its uncollectible accounts by aging its accounts receivable and applying percentages to various aged categories of accounts. Mohan computes a total of $2,100 in estimated uncollectible accounts as of its current year end. Its accounts receivable has a balance of $86,000, and its allowance for uncollectible accounts has an unused balance of $700 before any year end adjustments.

Required -

a. What amount of bad debt expense will Mohan report in its income statement for the current year?

b. Determine the net amount of accounts receivable reported in current assets at year end.

Reference no: EM132672749

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