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Accounting

Provide solution.See the attached file and the number 3 is this:3.During 2017, Wishbone Corporation had a total of $5,000,000 in sales, of which 80% were on credit. At year-end, the Accounts Receivable balance showed a total of $2,300,000, which had been aged as follows:
Age Amount
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . $1,900,000
1–30 days past due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
31–60 days past due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
61–90 days past due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000
Over 90 days past due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 30,000
$2,300,000
What will be the bad debt expense under each of the following independent conditions. Assume, where applicable, that Allowance for Bad Debts had a credit balance of $5,500 immediately before these adjustments.
Required:
(a) Based on experience, uncollectible accounts existing at year-end are estimated to be 3% of total accounts receivable.
Answer:
(b) Based on experience, uncollectible accounts are estimated to be the sum of:
1% of current accounts receivable
6% of accounts 1–30 days past due
10% of accounts 31–60 days past due
20% of accounts 61–90 days past due
30% of accounts over 90 days past due

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