Question

Oriole Co. uses an aging schedule at December 31.

Number of Days Outstanding		Accounts Receivable				Estimated % Uncollectible				Estimated Uncollectible Accounts
0–30 days			$264,600				1%				$2,646
31-60 days			71,300				5%				3,565
61-90 days			45,400				11%				4,994
Over 90 days			21,600				19%				4,104
Total			$402,900								$15,309

A) Assuming the allowance for doubtful accounts has an unadjusted credit balance of $4,980 at December 31, what is the bad debt expense for the year?

Bad debt expense

$enter the Bad debt expense in dollars

B) Prepare the current assets section of the balance sheet for Oriole Co. Assume that, in addition to the receivables, it has cash of $80,100, merchandise inventory of $133,000, and prepaid insurance of $9,200. (List Current Assets in order of liquidity.)

ORIOLE Co. Balance Sheet (Partial) choose the accounting period                                                                      For the Year Ended December 31,2021For the Month Ended December 31,2021December 31, 2021
Assets
select an opening section name                                                                      Total AssetsTotal Current AssetsCurrent AssetsTotal Long-Term InvestmentsTotal LiabilitiesTotal Liabilities and Stockholders' EquityLong-Term LiabilitiesTotal Intangible AssetsProperty, Plant and EquipmentIntangible AssetsTotal Stockholders' EquityTotal Long-Term LiabilitiesCurrent LiabilitiesTotal Property, Plant and EquipmentStockholders' EquityTotal Current LiabilitiesLong-Term Investments
enter a balance sheet item					$enter a dollar amount
enter a balance sheet item			$enter a dollar amount
select between addition and deduction                                                                      AddLess: enter a balance sheet item			enter a dollar amount		enter a subtotal of the two previous amounts
enter a balance sheet item					enter a dollar amount
enter a balance sheet item					enter a dollar amount
select a closing section name                                                                      Total Stockholders' EquityCurrent LiabilitiesTotal Property, Plant and EquipmentTotal Liabilities and Stockholders' EquityIntangible AssetsTotal Current LiabilitiesTotal AssetsTotal LiabilitiesTotal Intangible AssetsTotal Long-Term LiabilitiesLong-Term InvestmentsProperty, Plant and EquipmentCurrent AssetsTotal Long-Term InvestmentsLong-Term LiabilitiesStockholders' EquityTotal Current Assets					$enter a total amount for this section

Answer 1

Based on the information available in the question, we can answer as follows:-

Requirement A:-

The Bad Debt expense for the year is calculated as follows:-

Step 1:-

Calculate the estimated accounts uncollectible

Number of days outstanding	Accounts Receivable	Estimated Uncollectible %	Estimated uncollectible accounts
0 - 30 days	264,600	1%	2,646
31 - 60 days	71,300	5%	3,565
61 - 90 days	45,400	11%	4,994
91 - 120 days	21,600	19%	4,104
Total	402,900		15,309

Step 2:-

Bad Debt expense for the year :-

Bad debt expense = Ending balance for allowance for uncollectible accounts - Opening Balance for allowance for uncollectible accounts

Bad debt expense = $15,309 - $4,980

Bad debt expense = $10,329

Requirement B:-

The current assets section of the Oriole co balance sheet is :-

ORIOLE CO.
BALANCE SHEET PARTIAL
Particulars	Amount	Amount
Cash		80,100
Merchandise Inventory		133,000
Prepaid Insurance		9,200
Accounts Receivable	402,900
Less:- Allowance for doubtful accounts	(15,309)
		387,591
Current Assets		609,891

Please let me know if you have any questions via comments and all the best :)