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At December 31, 2013, Hanna Toys had a balance of $82,700 in its Accounts Receivable account and a credit balance of $300 in its Allowance for Doubtful Accounts account. The company analyzed and aged its accounts receivable based on the following estimated uncollectible amounts:


Age of Accounts	Receivables Balance	Estimated % Uncollectible

Current	$43,500	0.6%

31 to 60 day	22,100	2.2%

61 to 90 days	8,900	5.4%

Over 91 days	8,200	21.0%

Total	$82,700

The company bases its provision for credit losses on the aging analysis.

Required:

a. What amount of bad debt expense will Hanna Toys report in its 2013 income statement? Round all your calculations to the nearest dollar.

b. How would Accounts Receivable and the Allowance for Doubtful Accounts appear in its December 31, 2013, balance sheet?

Use the following information to prepare a bank reconciliation for Forrester Company at April 30, 2013:

(1) Cash account balance, April 30, $9,786.40.

(2) Bank statement balance, April 30, $10,758.20.

(3) Service charge on bank statement not recorded in books, $70.00.

(4) Deposits in transit, $1,438.60.

(5) Outstanding checks, April 30, $946.80.

(6) The bank statement included a charge of $466.40 for N. Ryan’s NSF check. The check, returned with the bank statement, had been received by Forrester in payment on account.

(7) The bank collected a $2,000.00 note in April for Forrester. This amount was included in the bank statement, but Forrester had not yet recorded the collection. The bank’s $70.00 service charge for April [see (3) above] included collection charge for the note.