What is the estimate for allowance for doubtful accounts

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Reference no: EM131290037

CREDIT LOSSES BASED ON ACCOUNTS RECEIVABLE:

Rock Company, who handles its credit losses w/ the allowance method, analyzed its accounts receivable balance at Dec. 31, 2013 and arrived at the aged balances listed below, along w/ the percentage that is estimated to be uncollected:

Age Group-Balance-Estimated Loss%

Current-$100,000-2.0%

1-30 days past due-$30,000-4.0%

31-60 days past due-$10,000-15.0%

Over 60 days past due-$10,000-25.0%

Total Balance=150,000

(a) What is the estimate for Bad Debt Expense?____________________

(b) What is the estimate for Allowance for Doubtful Accounts? _________________

Reference no: EM131290037

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