Question
Alpha Company uses aging Accounts Receivable to estimate uncollectible. The unadjusted Trial Balance amount of Accounts Receivable on December 31,2016, has a balance that consist
Alpha Company uses aging Accounts Receivable to estimate uncollectible. The unadjusted Trial Balance amount of Accounts Receivable on December 31,2016, has a balance that consist of: Days outstanding Amount Estimated uncollectible 0-60 $200,000 1% 61-120 90,000 2% Over 120 100,000 6% Total $390,000 Activity during Fiscal year 2016, for alpha company consist of: July 15 Alpha wrote off the Bravo Zulu company account as not collectible for the amount of $8,000 Oct. 20 Alpha company recovered $5,000 from the Charlie delta company for settlement of their prior debt that had been written off during FY 2015 Alpha Companys December 31, 2015 allowance for uncollectible accounts was $2,500. Under the aging method, what amounts should alpha company report at December 31,2016 for: 1. Allowance for uncollectible account 2. Bad debt expense
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