Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

Students also viewed these Accounting questions

Question

How do you see the company changing over the next 5 years?

Answered: 1 week ago