Question

In: Accounting

At December 31, 2018 before any year-end adjustments, the Accounts Receivable balance of Daulat Inc is...

At December

31, 2018 before any year-end adjustments, the Accounts Receivable balance of Daulat Inc is $300,000. Credit sales for the 2018 are $900,000, and allowance for bad debt has a $10,000 beginning credit balance. Daulat Inc prepares the following aging schedule for accounts receivable

(age, amount, estimated uncollectible)

0-30 Days

$150,000

1%

31- 60 Days

$100,000

4%

61 -90 Days

$40,000

10%

Over 90 Days

$10,000

40%

1.

Calculate the balance in the allowance for bad debt on December 31, 2018 assuming Daulat Inc estimates that 2% of credit sales will be uncollectible

2.

What is the bad debt expense for 2018 assuming Daulat Inc uses the aging of accounts method

Expert Solution

ekkarill92 answered 2 years ago

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