Darling Company Ages Its Accounts Receivable to Estimate Bad Debts

Essay

Darling Company ages its accounts receivable to estimate bad debts for financial statement purposes.President Darling is at a meeting with creditors and needs to know his total accounts receivable balance.Unfortunately, Darling picked up the wrong computer report and has, instead, a summary printout of the company's estimated bad debts as follows:
$\begin{array}{lrr}\text { Age of Receivable }&\text { Bad Debt }&\text { \% wncollectible }\\0-30 \text { days } & \$ 1,750 & 0.5 \% \\31-60 \text { days } & 1,500 & 1.5 \% \\61-120 \text { days } & 4,000 & 8.0 \% \\\text { more than } 120 \text { days } & 17,500 & 70.0 \%\end{array}$ Calculate the accounts receivable balance based on Darling's bad debt summary.