What bad debts expense to be recorded for the year is

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An aging of Maligaya Company's accounts receivable on December 31, 2017 reveals the following information:

Time outstanding               Amount of accounts receivable

Under 30 days                   800,000
30-60 days.                     16,000
61-120 days.                   12,000
121-180 days.                   8,000
Over 180 days.                    4,000
Total.                              120,000

Based on past experience, the company believes that the following uncollectible percentages are appropriate: under 30 days, 1.5%; 30-60 days, 3%; 61-120 days, 15%; 121-180 days, 30%; over 180 days, 60%.

Problem 1: The bad debts expense to be recorded for the year is

Reference no: EM132819472

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