Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year....

Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year.

Accounts Receivable Age	Amount	Proportion Expected to Default	Allowance Required
Current	$310,500	0.005	$1,553
1–30 days past due	47,500	0.01	475
31–45 days past due	25,000	0.13	3,250
46–90 days past due	12,800	0.20	2,560
91–135 days past due	6,100	0.25	1,525
Over 135 days past due	4,200	0.60	2,520
			$11,883

The balance in Glencoe's allowance for doubtful accounts at the beginning of the year was $49,520 (credit). During the year, accounts in the total amount of $51,232 were written off.

Required:

1. Determine bad debt expense.

2. Prepare the journal entry to record bad debt expense.

3. If Glencoe had written off $91,000 of receivables as uncollectible during the year, how much would bad debt expense reported on the income statement have changed?

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Expert Solution

ekkarill92 answered 1 year ago

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