Accounts receivable and allowance for doubtful accounts

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Reference no: EM1312485

Finding  the write off of the specific receivable.

The Draber Company uses the allowance method based on the aging method to determine the estimated allowance for doubtful accounts. Below is presented an aging at the end of the current period with the percent uncollectible experience rates:

 

 

Number of Days Outstanding

 

Total

0-30 days

31-60 days

61-90 days

91-120 days

Over 120 days

Accounts Receivable

$450,000

$220,000

$100,000

$45,000

$30,000

$55,000

%uncollectible rate

 

2%

4%

6%

8%

10%

If $2,000 is determined to be specifically uncollectible, what effect will the write-off of the specific receivable have on:
a. accounts receivable?
b. allowance for doubtful accounts?
c. net receivables?
d. bad debt expense?
You may find it helpful to use a journal entry as part of your response, but this is not required.

Reference no: EM1312485

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