Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alex Company uses the aging method to adjust the allowance for uncollectible accounts at the end of the period. At December 31, 2020, the balance

image text in transcribed

image text in transcribed

Alex Company uses the aging method to adjust the allowance for uncollectible accounts at the end of the period. At December 31, 2020, the balance of accounts receivable is $210,000 and the allowance for uncollectible accounts has a credit balance of $4,500 (before adjustment). An analysis of accounts receivable produced the following age groups: E: (Click the icon to view the accounts receivable aging information.) Based on past experience, Alex estimates that the percentages of accounts that will prove to be uncollectible within the three groups are 6%, 12%, and 23%, respectively. Based on these facts, the adjusting entry for bad debt expense should be made in the amount of O A. $15,580. B. $20,080. O C. $21,080. OD. $11,080. X Accounts receivable aging information Current $ 100,000 60 days past due 102,000 8,000 Over 60 days past due $ 210,000

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

Step: 3

blur-text-image

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

Accounting For Inventory

Authors: Steven M. Bragg

1st Edition

1938910222, 9781938910227

More Books

Students also viewed these Accounting questions