E5.17 Preparing an Aging Schedule. East Bay Inc. uses the aging method to estimate the company's bad debt expense. Mark Evans, the president of the company, collected information about the company's outstanding accounts receivable and their probability of collection: Probability of Non-Collection Account Age Amount 0-30 days. 31-60 days. 61-90 days. 91-120 days. Over 120 days $600,000 300,000 150,000 90,000 50,000 0.75% 2.00 3.00 5.00 30.00 Calculate the allowance for uncollectible accounts for East Bay, Inc., the total balance in accounts receivable, and the net realizable value of the company's accounts receivable. Assume that East Bay, Inc. adopts a policy of writing off as worthless all unpaid accounts receivable over 120 days old. How will implementation of this policy impact the net realizable value of the company's accounts receivable? Why?

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Saved Help Save E6-14 (Algo) Recording and Reporting a Bad Debt Estimate Using Aging Analysis LO6-2 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, $51,600; (2) up to 180 days past due, $15,300; and (3) more than 180 days past due, $4,200. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 3 percent, (2) 12 percent, and (3) 32 percent, respectively. At December 31, the end of the current year, the Allowance for Doubtful Accounts balance is $300 (credit) before the end-of-period adjusting entry is made. Required: 1. Prepare the appropriate bad debt expense adjusting entry for the current year. 2. Show how the various accounts related to accounts receivable should be shown on the December 31, current year, balance sheet. Complete this question by entering…

3. Grump Computer has credit sales of $400,000 in 2023 and a debit balance of $300 in the Allowance for Doubtful Accounts at year end. As of December 31, 2023, $120,000 of accounts receivable remain uncollected. The credit manager of Grump prepared an aging schedule of accounts receivable and estimates that $5,200 will prove to be uncollectible. On March 4, 2024 the credit manager authorizes a write-off of the $1,000 balance owed by A. Shard. Required (a) Prepare the adjusting entry to record the estimated uncollectible accounts expense in 2023. (b) Show the statement of financial position presentation of accounts receivable on December 31, 2023: (c) On March 4, before the write-off, assume the balance of Accounts Receivable account is $160,000 and the balance of Allowance for Doubtful Accounts is a credit of $4,000. Make the appropriate entry to record the write-off of the Shard account. Also show the statement of financial position presentation of accounts receivable before and after…