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Question - Baylor Co.'s accounts receivable show the following balances by age:
Age of Receivable; Balance
31-60 days; $165,000
0-30 days; $800,000
61-120 days; $75,000
more than 120 days; $40,000
Before aging the accounts, AFUA has debits totaling $12,000 from writing off actual accounts during the year. Baylor Co. uses the following percentages to compute the estimated amounts of receivables that will eventually prove uncollectible: 0-30 days, 1.0%; 31-60 days, 1.2%; 61-120 days, 5%; and more than 120 days, 65%.
What is the ending balance of Bad Debt Expense after the proper adjusting journal entry to estimate uncollectibles for the period has been made?
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