Answered step by step
Verified Expert Solution
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
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started