Reference no: EM133162850

Question - Lin's Dairy uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: [1] not yet due, $17,000: (2) up to 120 days past due, $6,100: and {3) more than 120 days past due, $3,500. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 2 percent, (2) 14 percent, and (3) 36 percent, respectively. At the end of the current year, the Allowance for Doubtful Accounts balance is $1,000 [credit] before the end-of-period adjusting entry is made. What amount should be recorded as Bad Debt Expense for the current year?