CREDIT LOSSES BASED ON ACCOUNTS RECEIVABLE:
Rock Company, who handles its credit losses w/ the allowance method, analyzed its accounts receivable balance at Dec. 31, 2013 and arrived at the aged balances listed below, along w/ the percentage that is estimated to be uncollected:
Age Group-Balance-Estimated Loss%
Current-$100,000-2.0%
1-30 days past due-$30,000-4.0%
31-60 days past due-$10,000-15.0%
Over 60 days past due-$10,000-25.0%
Total Balance=150,000
(a) What is the estimate for Bad Debt Expense?____________________
(b) What is the estimate for Allowance for Doubtful Accounts? _________________