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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