Mercy Inc. uses the Aging of Accounts Receivable method for estimating uncollectible accounts. The accounting records show the following information at the end of the year: Number of Days Unpaid 0 - 30 31-60 61-90 Over 90 Accounts Receivable $147,000 $103,500 $62,000 $37,500 Estimated % Uncollectible 5% 10% 20% 35% If the unadjusted balance of the Allowance for Doubtful Accounts is a credit balance of $8,700, what is the amount of Bad Debt Expense to be recorded for the year? A) $60,625 B) $43,225 C) $51,925 D) $34,525 6) Legacy Company uses the aging of accounts receivable method. The company performed an aging of accounts receivable on December 31 and gathered the following information: Accounts Receivable Unadjusted balance in Allowance for Doubtful Accounts (credit) Estimated Uncollectible Accounts Receivable $575,000 60,000 69,000 What is the Net Accounts Receivable that will be reported on the balance sheet at December 31? A) $515,000 B) $506,000 C) $437,000 D) $566,000 Use the following information to answer questions 7 and 8. A customer of Exquisite Flooring recently filed for bankruptcy protection, leading the credit manager of Exquisite Flooring to conclude that the company would never collect the balance of $2,800 owed by the customer. Exquisite Flooring uses the allowance method to account for uncollectible accounts receivable. 7) Which of the following entries would be made by Exquisite Flooring to record the write-off of the custo accounts receivable? A) Debit Accounts Receivable and credit Allowance for Doubtful Accounts for $2,800 3) Debit Bad Debt Expense and credit Allowance for Doubtful Accounts for $2,800. Debit Allowance for Doubtful Accounts and credit Accounts Receivable for $2,800 Debit Bad Debt Expense and credit Cash for $2,800 Debit Bad Debt Expense and credit Accounts Receivable for $2,800