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A company had the following balances at the end of a month: Accounts Receivable $ 145,000; Allowance for Doubtful Accounts $3,500 (debit); credit Sales $
A company had the following balances at the end of a month: Accounts Receivable $ 145,000; Allowance for Doubtful Accounts $3,500 (debit); credit Sales $ 375,000. The company uses an Aged Accounts Receivable approach to estimate bad receivables. The breakdown of the Accounts Receivable balance is below. Not yet due 1 to 30 days past due 31 to 60 days past due 60 to 90 days past due Over 90 days past due Total $ 75,000 $ 25,000 $ 20,000 $ 15,000 $ 10,000 $ 145,000 2% 5% 10% 20% 40% What adjustment needs to be made to the Allowance for Doubtful Accounts at the end of the month
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