At December 31, 2013, Hanna Toys had a balance of $82,700 in its Accounts Receivable...
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Accounting
At December 31, 2013, Hanna Toys had a balance of $82,700 in its Accounts Receivable account and a credit balance of $300 in its Allowance for Doubtful Accounts account. The company analyzed and aged its accounts receivable based on the following estimated uncollectible amounts:
Age of Accounts
Receivables
Balance
Estimated % Uncollectible
Current
$43,500
0.6%
31 to 60 day
22,100
2.2%
61 to 90 days
8,900
5.4%
Over 91 days
8,200
21.0%
Total
$82,700
The company bases its provision for credit losses on the aging analysis.
Required:
a. What amount of bad debt expense will Hanna Toys report in its 2013 income statement? Round all your calculations to the nearest dollar.
b. How would Accounts Receivable and the Allowance for Doubtful Accounts appear in its December 31, 2013, balance sheet?
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