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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