i will upvote. thanks **Estimating Bad Debts Expense and Reporting Receivables**At December 31, Barber Company had a balance of $378,000 in its accounts receivable and an unused balance of $2,340 in its allowance for uncollectible accounts. The company then aged its accounts as follows:| | Amount ||--------------|---------|| Current | $311,400|| 1–60 days past due | $43,200 || 61–180 days past due | $15,300 || Over 180 days past due | $8,100 || **Total accounts receivable** | **$378,000** |The company has experienced losses as follows: 1% of current balances, 5% of balances 1–60 days past due, 15% of balances 61–180 days past due, and 40% of balances over 180 days past due. The company continues to base its allowance for uncollectible accounts on this aging analysis and percentages.**Questions:**a. What amount of bad debts expense does Barber report on its income statement for the year? b. Show how Barber’s December 31 balance sheet will report the accounts receivable and the allowance for uncollectible accounts.**Note:** Round your answers to the nearest whole dollar.**Note:** Do not use a negative sign with your answers.**Solution:**1. Calculation of Bad Debts Expense: - **Current:** 1% of $311,400 = $3,114 - **1–60 days past due:** 5% of $43,200 = $2,160 - **61–180 days past due:** 15% of $15,300 = $2,295 - **Over 180 days past due:** 40% of $8,100 = $3,240 **Total estimated bad debts = $3,114 + $2,160 + $2,295 + $3,240 = $10,809** 2. Reporting on Balance Sheet: - **Accounts Receivable:** $378,000 - **Less allowance for uncollectible accounts:** $10,809 - **Net Accounts Receivable:** $367,191 ($378,000 - $10,809)**Current Assets:**| Item | Amount ||----------------------------------------|--------|| Accounts receivable

Bad debt expense is the anticipated amount of accounts receivable that will not be paid by…

Estimating Bad Debts Expense and Reporting Receivables At December 31, Barber Company had a balance of $378,000 in its accounts receivable and an unused balance of $2,340 in its allowance for uncollectible accounts. The company th $311,400 43,200 15,300 8,100 Current 1-60 days past due 61-180 days past due Over 180 days past due Total accounts receivable $378,000 The company has experienced losses as follows: 1% of current balances, 5% of balances 1-60 days past due, 15% of balances 61-180 days past due, and 40% of balances over 180 c continues to base its allowance for uncollectible accounts on this aging analysis and percentages. a. What amount of bad debts expense does Barber report on its income statement for the year? $ 0 b. Show how Barber's December 31 balance sheet will report the accounts receivable and the allowance for uncollectible accounts. Note: Round your answers to the nearest whole dollar. Note: Do not use a negative sign with your answers.