Your company has averaged about 26% of its accounts receivable in the "over 90 days past due" category and now forecasts 18% in this category.You use the aging of accounts receivable method of estimating bad debt expense.If the total of credit sales remains unchanged from previous months and no write offs are made,the estimate of bad expense based on the new forecast will:

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The aging of accounts receivable method estimates bad debt expense by applying a percentage to each category of past due receivables. As the percentage of accounts over 90 days past due is forecasted to decrease from 26% to 18%, the estimated bad debt expense will also decrease. This is because there are fewer accounts expected to become uncollectible, resulting in a lower expense. The total credit sales and write-offs are not mentioned as changed, so they do not affect the estimate.

Your Company Has Averaged About 26% of Its Accounts Receivable