LaFond Company analyzes its accounts receivable at December 31 and arrives at the aged categories below along with the percentages that are estimated as uncollectible. Age Group Current (not past due) 1-30 days past due Accounts Receivable Estimated Loss % $525,000 0.50% 189,000 1% 31-60 days past due 42,000 2% 61-120 days past due 23,100 5% 121-180 days past due 12,600 10% Over 180 days past due 8,400 $800,100 25% Total accounts receivable At the beginning of the fourth quarter, there was a credit balance of $9,135 in the Allowance for Uncollectible Accounts. During the fourth quarter, LaFond Company wrote off $8,043 in receivables as uncollectible. a. What amount of bad debts expense will LaFond report for the year? $ b. What is the balance of accounts receivable that it reports on its December 31 balance sheet? $ c. Report (1) the write-off of accounts receivable as uncollectible and (2) bad debt expense calculated in part a using the financial statement effects template. Note: Use negative signs with your answers, when appropriate.

LaFond Company analyzes its accounts receivable at December 31 and arrives at the aged categories below along with the percentages that are estimated as uncollectible. Age Group Current (not past due) 1-30 days past due Accounts Receivable Estimated Loss % $525,000 0.50% 189,000 1% 31-60 days past due 42,000 2% 61-120 days past due 23,100 5% 121-180 days past due 12,600 10% Over 180 days past due 8,400 $800,100 25% Total accounts receivable At the beginning of the fourth quarter, there was a credit balance of $9,135 in the Allowance for Uncollectible Accounts. During the fourth quarter, LaFond Company wrote off $8,043 in receivables as uncollectible. a. What amount of bad debts expense will LaFond report for the year? $ b. What is the balance of accounts receivable that it reports on its December 31 balance sheet? $ c. Report (1) the write-off of accounts receivable as uncollectible and (2) bad debt expense calculated in part a using the financial statement effects template. Note: Use negative signs with your answers, when appropriate.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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