Jr-6Wq Company reported the following account balances at January 1, 2039: accounts receivable ................ $246,822 allowance...

Jr-6Wq Company reported the following account balances at
January 1, 2039:

  accounts receivable ................  $246,822
  allowance for bad debts ............  $ 25,155

During 2039, Jr-6Wq Company wrote-off as uncollectible
accounts receivable totaling $41,797.

At December 31, 2039, Jr-6Wq Company prepared the following
aging schedule:

                        Accounts Receivable    % Uncollectible
  not past due               $225,200                 2%
  1-2 months past due         136,900                 6%
  3-4 months past due          83,120                10%
  5-6 months past due          55,610                20%
  over 6 months past due       26,700                39%

Calculate Jr-6Wq Company's bad debt expense for 2039.

Expert Solution

Bad debt expense for 2039 = $ 59,207

Working:

	Accounts Receivable		Percent Uncollectible (%)		Estimated uncollectibles
Not past due	$ 225,200	x	2%		$ 4,504
1-2 months past due	$ 136,900	x	6%	=	$ 8,214
3-4 months past due	$ 83,120	x	10%	=	$ 8,312
5-6 months past due	$ 55,610	x	20%	=	$ 11,122
over 6 months past due	$ 26,700	x	39%	=	$ 10,413
Total					$ 42,565

Estimated collectibles	$ 42,565
Less: Allowance for bad debts as on Jan.01,2039	$ (25,155)
Add: Write off	$ 41,797
Bad debt expense for 2039	$ 59,207

ekkarill92 answered 2 years ago

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