S & R Company Uses the Aging of Accounts Receivable $$\text { Schedule df Accounts Receivuble by Age }$$

Essay

S & R Company uses the aging of accounts receivable approach to estimate bad debt expense. On December 31, 2020, an analysis of accounts receivable revealed the following:
$$\text { Schedule df Accounts Receivuble by Age }$$
$\begin{array}{|r|c|r|r|}\hline \begin{array}{c}\text { December 31, 2020 } \\\text { Accounts Receivable }\end{array} & \begin{array}{c}\text { Age of Accounts } \\\text { Receivable }\end{array} & \begin{array}{c}\text { Expected } \\\text { Percentage } \\\text { Uncollectible }\end{array} & \begin{array}{c}\text { Allowance for } \\\text { doubtful accounts }\end{array} \\\hline 140,000 & \text { Not yet due } & 0.75 \% & \\\hline 60,000 & 1-30 \text { days past due } & 4 \% & \\\hline 19,000 & 31-60 \text { days past due } & 10 \% & \\\hline 5,000 & 61-90 \text { days past due } & 60 \% & \\\hline 7,000 & \text { Over } 90 \text { days past due } & 90 \% & \\\hline\end{array}$ Required:
(a) Calculate the amount of allowance for doubtful accounts that should be reported on the balance sheet at December 31, 2020.
(b) Calculate the amount of bad debts expense that should be reported on the 2020 income statement, assuming that the balance of Allowance for Doubtful Accounts on January 1 was $44,000 (credit balance) and accounts receivable written off during the year totaled $49,200.
(c) Present the appropriate general journal entry to record bad debts expense on December 31, 2020.
(d) Show how accounts receivable will appear on the balance sheet at December 31, 2020.