Quebec Market reports the following analysis of potential losses in its accounts receivable: Age Past Due Receivable Balance Estimated Loss (%) 0-30 days past due $67,200 0.5% 31-60 days past due 30,000 1.8% 61-90 days past due 18,000 4.3% Over 90 days past due 3,300 45.5% Total $118,500   The balance of Allowance for Doubtful Accounts is $600 credit balance on December 31, 2019 prior to adjustments. a. Compute bad debts expense that will be recorded for 2019. (Round to nearest whole dollar.) b. What is the amount of net accounts receivable to be reported on Quebec Market’s December 31, 2019 balance sheet?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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  1. Quebec Market reports the following analysis of potential losses in its accounts receivable:

Age Past Due

Receivable Balance

Estimated Loss (%)

0-30 days past due

$67,200

0.5%

31-60 days past due

30,000

1.8%

61-90 days past due

18,000

4.3%

Over 90 days past due

3,300

45.5%

Total

$118,500

 

The balance of Allowance for Doubtful Accounts is $600 credit balance on December 31, 2019 prior to adjustments.

a. Compute bad debts expense that will be recorded for 2019. (Round to nearest whole dollar.)

b. What is the amount of net accounts receivable to be reported on Quebec Market’s December 31, 2019 balance sheet?

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