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Baltimore Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of:


Dollar Value Age of Account Estimated Collectible

$170,000 < 30 days old 99%

60,000 30 to 60 days old 91%

30,000 61 to 120 days old 80%

14,000 > 120 days old 13%

Respuesta :

Answer:

$ value                        estimated uncollectible    Estimated uncollectible  

$170,000                             1%                                 $1,700  

60000                                      9%                                 $5,400  

30000                                      20%                                 $6,000  

14000                                       87%                                 $12,180  

                                                    Total                                 $25,280  

Bad debt expenses are  

25280+2000=$27,280  

Allowance for doubtful accounts balance is $25,280

Explanation:

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