At December 31, 2018, before any year-end adjustments, the Accounts Receivable balance of Alpha Company, Inc., is

Question:

At December 31, 2018, before any year-end adjustments, the Accounts Receivable balance of Alpha Company, Inc., is $390,000. The Allowance for Uncollectible Accounts has a $15,500 credit balance. Alpha prepares the following aging schedule for Accounts Receivable:

Age of Accounts Total Balance 1-30 Days 31-60 Days 61–90 Days Over 90 Days $390,000 Estimated uncollectible $160,000 $

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 Alpha will report Accounts Receivable on its December 31 balance sheet.

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...

Fantastic news! We've Found the answer you've been seeking!