Estimating Uncollectible Accounts and Reporting Accounts ReceivableLaFond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with the percentages that are estimated as uncollectible. Age GroupAccountsReceivableEstimatedLoss %0-30 days past due$ 180,0001%31-60 days past due40,000261-120 days past due22,0005121-18012,00010Over 180 days past due8,00025Total accounts receivable$ 262,000 (b) Use the financial statement effects template to record LaFond's bad debts expense for the year.Use negative signs with your answers, when appropriate. Balance SheetTransactionCash Asset+NoncashAssets=Liabilities+ContributedCapital+EarnedCapital Record bad debts expense Income StatementRevenue-Expenses=Net Income

Bad debt expenses = Receivable * Expected loss

Answered: Estimating Uncollectible Accounts and…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 24E

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Estimating Uncollectible Accounts and Reporting Accounts Receivable
LaFond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with the percentages that are estimated as uncollectible.

Age Group	Accounts Receivable	Estimated Loss %
0-30 days past due	$ 180,000	1%
31-60 days past due	40,000	2
61-120 days past due	22,000	5
121-180	12,000	10
Over 180 days past due	8,000	25
Total accounts receivable	$ 262,000