The accounts receivable aging schedule determines the dollar amount of uncollectible accounts receivable at year-end;this dollar amount of uncollectible accounts receivable is the bad debt expense that is recorded for the year regardless of the existing balance in the allowance for doubtful accounts.

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The accounts receivable aging schedule helps determine the appropriate balance for the allowance for doubtful accounts, which is used to estimate the amount of uncollectible accounts receivable. The amount recorded as bad debt expense for the year is based on the change in the balance of the allowance for doubtful accounts from the beginning to the end of the year.

The Accounts Receivable Aging Schedule Determines the Dollar Amount of Uncollectible