Casilda Company uses the aging approach to estimate bad debt expense. The ending balance of...
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Casilda Company uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $50,500. (2) up to 180 days past due. $15,800; and (3) more than 180 days past due, $4.400. Experience has shown that for each age group, the average loss rate on the amount of the recelvabies at year-end dive to uncollectubility is (1) 3 percent, (2) 13 percent, and (3) 31 percent, respectively. At December 31 , the end or the current year, the Allowance for Doubtful Accounts balance is $300 (credit) before the end of period adjusting entry is made Required: 1. Piepare the appropriate bad debt expense adjusting entry for the current yeat 2 Show how the various accounts related to accounts receivable should be shown on the December 31 , current year, balance sheet
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