Question

Heller Corporation has aged its accounts receivable and estimated uncollectible accounts as follows (in thousands). Age of Receivables Current 30-60 days past due 61-90 days past due Over 90 days past due A/R Balance Estimated % uncollectible $11,000 $2.400 $1,700 $840 196 396 696 10% What bad debt expense should the company report for the current period

Answer 1

Answer: E. There is not enough information to determine the amount

Step-by-step explanation:

Bad Debts = Total Uncollectible - Allowance for Uncollectible

Total Uncollectible = ∑(Balance per age of receivables * % uncollectible)

= ( 1% * 11,000) + (3% * 2,400) + (6% * 1,700) + (10% * 840)

= 110 + 72 + 102 + 84

= $368,000

Allowance for Uncollectible balance is not given so Bad Debt Expense cannot be calculated.