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The Bad News Bears (BNB) Company have had trouble collecting all of their accounts receivable...

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Accounting

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The Bad News Bears (BNB) Company have had trouble collecting all of their accounts receivable in prior years. The credit department has prepared an aging schedule showing the likelihood of collecting different groups of receivables. This schedule applies for the year ended 12-31-2017. This information is based on past history. Accounts Receivable Months Outstanding Percentage Deemed $45,000 55,000 50,000 30,000 6 months 98% 96% 90% 80% The current balance in the Allowance for Bad Debts account is a $7,100 CREDIT. REQUIRED 1. Using the aging of AR method, compute the amount of bad debt expense for 2017 and record the proper adjusting entry. Show all computations clearly!!! (3 points) BAD DEBT EXPENSE COMPUTATION: ENTRY:DR: CR: 2. Show how the AR section of the Balance Sheet would appear at 12-31-2017 after taking into account the 2017 adjusting entry. (2 points)

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