-Refer to AT&U Company. If the company uses the aging of accounts receivable approach to estimate its bad debts, what amount will be reported as bad debt expense for 2013?

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The aging of accounts receivable approach estimates bad debt expense based on the age of the accounts receivable. The older the account receivable, the more likely it is to be uncollectible. AT&T Company has $25,000 in accounts receivable that are over 90 days old. This amount is estimated to be uncollectible and will be reported as bad debt expense for 2013.