Ch. 7 - Receivables and InvestmentsWorksheetSee all chapters
 Ch. 1 - Introduction to Accounting 1hr & 21mins 0% complete Worksheet Ch. 2 - Transaction Analysis 1hr & 14mins 0% complete Worksheet Ch. 3 - Accrual Accounting Concepts 2hrs & 38mins 0% complete Worksheet Ch. 4 - Merchandising Operations 2hrs & 31mins 0% complete Worksheet Ch. 5 - Inventory 1hr & 55mins 0% complete Worksheet Ch. 6 - Internal Controls and Reporting Cash 1hr & 16mins 0% complete Worksheet Ch. 7 - Receivables and Investments 3hrs & 17mins 0% complete Worksheet Ch. 8 - Long Lived Assets 5hrs & 6mins 0% complete Worksheet Ch. 9 - Current Liabilities 2hrs & 19mins 0% complete Worksheet Ch. 10 - Time Value of Money 1hr & 27mins 0% complete Worksheet Ch. 11 - Long Term Liabilities 2hrs & 45mins 0% complete Worksheet Ch. 12 - Stockholders' Equity 2hrs & 15mins 0% complete Worksheet Ch. 13 - Statement of Cash Flows 2hrs & 24mins 0% complete Worksheet Ch. 14 - Financial Statement Analysis 5hrs & 27mins 0% complete Worksheet Ch. 15 - GAAP vs IFRS 56mins 0% complete Worksheet
###### The Aging-of-Receivables Method helps us calculate the ending balance in the Allowance for Doubtful Accounts. We will have to use our BASE formula or T-account to calculate the Bad Debt Expense.

Concept #1: Net Accounts Receivable: Aging of Receivables Method

Practice: A company has gross accounts receivable totaling $150,000. The company uses the aging-of-receivables method to estimate the allowance for doubtful accounts. The company estimates that the amount of uncollectible receivables will be$3,600. Currently, the allowance for doubtful accounts has a debit balance of \$800. What is the journal entry to record this year’s bad debt expense?