A. Complete each table by filling in the blanks. 0-30 days 31-90 days Over 90 days past due past due past due Accounts receivable amount $55,000 $34,000 $20,000 Percent uncollectible 8% 15% 30% Total per category Total uncollectible 0-60 days 61-120 days Over 120 days past due past due past due Accounts receivable amount $84,000 $13,000 $6,000 Percent uncollectible 8% 15% 30% Total per category 24 Total uncollectible B. Determine the difference between total uncollectible. C. How does the new total uncollectible amount affect net income and net accounts receivable? а. Bad debt expense is lower, net income is higher, and net receivables are higher. b. Bad debt expense is lower, net income is higher, and net receivables are lower. c. Bad debt expense is higher, net income is lower, and net receivables are higher. d. Bad debt expense is higher, net income is lower, and net receivables are lower.

A. Complete each table by filling in the blanks. 0-30 days 31-90 days Over 90 days past due past due past due Accounts receivable amount $55,000 $34,000 $20,000 Percent uncollectible 8% 15% 30% Total per category Total uncollectible 0-60 days 61-120 days Over 120 days past due past due past due Accounts receivable amount $84,000 $13,000 $6,000 Percent uncollectible 8% 15% 30% Total per category 24 Total uncollectible B. Determine the difference between total uncollectible. C. How does the new total uncollectible amount affect net income and net accounts receivable? а. Bad debt expense is lower, net income is higher, and net receivables are higher. b. Bad debt expense is lower, net income is higher, and net receivables are lower. c. Bad debt expense is higher, net income is lower, and net receivables are higher. d. Bad debt expense is higher, net income is lower, and net receivables are lower.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 11EA: Mirror Mart uses the balance sheet aging method to account for uncollectible debt on receivables....

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