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 The balance of the allowance for uncollectible accounts is $1,040 on December 31, before any adjustments. (a) What amount of bad debts expense will LaFond report in its income statement for the year?$Answer

Formula: Uncollectible amount = Receivables amount x loss percentage.

Answered: LaFond Company analyzes its accounts…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter14: Accounting For Uncollectible Accounts Receivable

Section14.1: Uncollectible Accounts Receivable

Problem 1OYO

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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