On December 31,2018,Andy Inc.has a debit balance of $1,500 for the Allowance for Uncollectible Accounts before any year-end adjustment.Andy Inc.also has the following information for its accounts receivable and the estimated percentages of bad debts for different past-due amounts: What is the amount of bad debt expense to be reported on Andy Inc.'s financial statements for 2018 using the aging method?
$$\begin{array} { | c | r | c | }
\hline \begin{array} { c }
\text { Age Group } \
\text { (days past } \
\text { due) }
\end{array} & \begin{array} { r }
\text { Accounts } \
\text { Receivable }
\end{array} & \begin{array} { c }
\text { Estimated Percent } \
\text { Uncollectble }
\end{array} \
\hline 0 - 30 & \$ 50,000 & 5 \% \
\hline 31 - 60 & \$ 20,000 & 10 \% \
\hline 61 - 90 & \$ 10,000 & 20 \% \
\hline
\end{array}$$

Question

On December 31,2018,Andy Inc.has a debit balance of $1,500 for the Allowance for Uncollectible Accounts before any year-end adjustment.Andy Inc.also has the following information for its accounts receivable and the estimated percentages of bad debts for different past-due amounts: What is the amount of bad debt expense to be reported on Andy Inc.'s financial statements for 2018 using the aging method?
$$\begin{array} { | c | r | c | } 
\hline \begin{array} { c } 
\text { Age Group } \
\text { (days past } \
\text { due) }
\end{array} & \begin{array} { r } 
\text { Accounts } \
\text { Receivable }
\end{array} & \begin{array} { c } 
\text { Estimated Percent } \
\text { Uncollectble }
\end{array} \
\hline 0 - 30 & \$ 50,000 & 5 \% \
\hline 31 - 60 & \$ 20,000 & 10 \% \
\hline 61 - 90 & \$ 10,000 & 20 \% \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of On December 31,2018,Andy Inc.has a debit balance of $1,500 for the Allowance for Uncollectible Accounts before any year-end adjustment.Andy Inc.also has the following information for its accounts receivable and the estimated percentages of bad debts for different past-due amounts: What is the amount of bad debt expense to be reported on Andy Inc.'s financial statements for 2018 using the aging method?
$$\begin{array} { | c | r | c | } 
\hline \begin{array} { c } 
\text { Age Group } \
\text { (days past } \
\text { due) }
\end{array} & \begin{array} { r } 
\text { Accounts } \
\text { Receivable }
\end{array} & \begin{array} { c } 
\text { Estimated Percent } \
\text { Uncollectble }
\end{array} \
\hline 0 - 30 & \$ 50,000 & 5 \% \
\hline 31 - 60 & \$ 20,000 & 10 \% \
\hline 61 - 90 & \$ 10,000 & 20 \% \
\hline
\end{array}$$

On December 31,2018,Andy Inc A)$6,500 B)$1,500

On December 31,2018,Andy Inc A)$6,500
B)$1,500