What amount of bad debts expense will lafond report for


LaFond Company analyzes its accounts receivable at December 31, 2013, and arrives at the aged categories below along with the percentages that are estimated as uncollectible.
Age Group Accounts Receivable Estimated Loss %
Current (not past due) $250,000 0.30%
1-30 days past due 90,000 1.0
31-60 days past due 20,000 2.0
61-120 days past due 11,000 5.0
121-180 days past due 6,000 10.0
Over 180 days past due 4,000
25.0
Total accounts receivable $381,000


At the beginning of the fourth quarter of 2013, there was a credit balance of $4,380 in the Allowance for Uncollectible Accounts. During the fourth quarter, LaFond Company wrote off $3,800 in receivables as uncollectible.

a. What amount of bad debts expense will LaFond report for 2013?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What amount of bad debts expense will lafond report for
Reference No:- TGS0792767

Expected delivery within 24 Hours