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A Company uses the percentage of receivables approach to account for its accounts receivable allowance for doubtful accounts. The company reserves 40% of the balance
A Company uses the percentage of receivables approach to account for its accounts receivable allowance for doubtful accounts. The company reserves 40% of the balance over 90 days, 30% of the balance 6190 days, and 10% of the balance 3160 days. As of April 30, the company had $200,000 aged less than 30 days, $150,000 aged 3160 days, $50,000 aged 6190 days, and $30,000 over 90 days. The allowance account currently has debit balance of $20,000. Which closing entry should the company make for the year-end financial statements?
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