Table A Owes Not Due Yet 1-30 days late 31-60 Cust A $7,000 $3,000 $2,000 Cust B $6,500 $4,000 $1,000 Cust C $12,000 $1,000 $5,000 61-90 90+ $2,000 $5,000 $1,000 $1,500 Table B Historical Default Classes and Rates NDY 1-30 31-60 61-90 90+ 3% 7% 15% 20% 60% Table A lists the current customers of your company and how much they owe. Table B summarizes the historical Accounts Receivables classifications and their default percentages in 2021 of your company. You, as a Junior Accountant, are asked to perform a Aging Schedule by your supervisor. Calculate the amount you need to record in the Bad Debt Expense line based on the historical default percentages. (Do not use the $ sign. If your answer is $123,456.78, enter 123456.78)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Table A
Owes Not Due Yet 1-30 days late 31-60
Cust A $7,000
$3,000
$2,000
$1,000
Cust B $6,500 $4,000
Cust C $12,000 $1,000
$5,000
61-90 90+
$2,000
$5,000 $1,000
$1,500
Table B
Historical Default Classes and
Rates
NDY
1-30
31-60
61-90
90+
3%
7%
15%
20%
60%
Table A lists the current customers of your company and how much they owe. Table B summarizes the historical Accounts Receivables classifications
and their default percentages in 2021 of your company. You, as a Junior Accountant, are asked to perform a Aging Schedule by your supervisor.
Calculate the amount you need to record in the Bad Debt Expense line based on the historical default percentages. (Do not use the $ sign. If your
answer is $123,456.78, enter 123456.78)
Transcribed Image Text:Table A Owes Not Due Yet 1-30 days late 31-60 Cust A $7,000 $3,000 $2,000 $1,000 Cust B $6,500 $4,000 Cust C $12,000 $1,000 $5,000 61-90 90+ $2,000 $5,000 $1,000 $1,500 Table B Historical Default Classes and Rates NDY 1-30 31-60 61-90 90+ 3% 7% 15% 20% 60% Table A lists the current customers of your company and how much they owe. Table B summarizes the historical Accounts Receivables classifications and their default percentages in 2021 of your company. You, as a Junior Accountant, are asked to perform a Aging Schedule by your supervisor. Calculate the amount you need to record in the Bad Debt Expense line based on the historical default percentages. (Do not use the $ sign. If your answer is $123,456.78, enter 123456.78)
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