At December 31, 2014, before any year-end adjustments, the Accounts Receivable balance of RTS Manufacturing is $260,000.

Question:

At December 31, 2014, before any year-end adjustments, the Accounts Receivable balance of RTS Manufacturing is $260,000. Te Allowance for Doubtful Accounts has a $16,000 credit balance. RTS Manufacturing prepares the following aging schedule for Accounts Receivable:

Requirements
1. Based on the aging of Accounts Receivable, is the unadjusted balance of the Allowance account adequate? Too high? Too low?
2. Make the entry required by the aging schedule. Prepare a T-account for the allowance.
3. Show how RTS Manufacturing will report Accounts Receivable on its December 31 balancesheet.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...