Reference no: EM132517184

Collins Company analyzes its accounts receivable at December 31 and arrives at the age categories below along with the percentages that are estimated as uncollectible. The balance of the allowance for uncollectible accounts is $1,100 on December 31 before any adjustments.

Age Group                            Accounts Receivable                           Estimated Loss (%)

0-30 days past due                     110,000                                       1

31-60 days past due                       40,000                                    2

61-120 days past due                     27,000                                    5

121-180 days past due                   14,000                                 10

Over 180 days past due                      9,000                                25

Total Accounts Receivable                  200,000

Questions:

Question a) What amount of bad debts expense will Collins report in its income statement for the year?

Question b) Use the financial statement effects template to record Collins' bad debts expense for the year.

Question c) What is the balance of accounts receivable on its December 31 balance sheet?