Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A Company uses aging to estimateuncollectibles.At the end of the fiscal year, Accounts Receivable has a balance that consists of: Dollar Value Age of Account.

A Company uses aging to estimate uncollectibles.  At the end of the fiscal year, Accounts Receivable has a balance that consists of:


Dollar Value Age of Account. Estimated Collectible


$195,000. < 30 days old. 99%


70,000 30 to 60 days old 94%


40,000 61 to 120 days old 78%


14,000 > 120 days old 12%


The current unadjusted Allowance for Uncollectible Accounts balance is a debit balance of $2,000 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the Allowance for Doubtful Accounts?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

2nd Edition

0078110823, 9780078110825

More Books

Students also viewed these Accounting questions

Question

What is the name of the program?

Answered: 1 week ago

Question

Itemize the accounting records needed for a small business.

Answered: 1 week ago