9.The Steven Co. estimates its Allowance for Doubtful Accounts by aging its accounts receivable. At the end of 20X1 its accounts receivable were aged as follows:

0-30 days$1,000,00031-90 days500,000over 90 days100,000

The company estimates that all amounts outstanding for 30 days or less will be collected but the 5% of the amounts outstanding between 31 and 90 days and 50% of the amount outstanding over 90 days will eventually be uncollectible. The balance in the Allowance for Doubtful Accounts at the beginning of 20X1 was $50,000. During 20X1, $35,000 of uncollectible accounts were written off.

The Uncollectible Accounts Expense for 20X1 is

$75,000

$60,000

None of the other alternatives are correct

$55,000

$35,000

Which of the following is a valid alternative action for an organization to take to minimize credit losses?

implement a system of formal naming and sharing for customers making late payments.

induce collection with sales discounts

never sell on credit

none