Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Alpha Company uses aging of Accounts Receivable to estimate uncollectible. The unadjusted Trial Balance amount of Accounts Receivable on December 31, 2016, has a balance
Alpha Company uses aging of Accounts Receivable to estimate uncollectible. The unadjusted Trial Balance amount of Accounts Receivable on December 31, 2016, has a balance that consists of Days outstanding Amount Estimated Uncollectible 0-60 $300,000 1% 61-120 90,000 2% Over 120 100,000 6% Total $490,000 Activity during Fiscal Year 2016, for Alpha Company consisted of: July 15 Alpha wrote of the Bravo Zulu Company account as not collectable for the amount of $8,500. Oct. 20 Alpha company recovered $5,500 from the Chartie Delta Company for settlement of their prior debt that had been written off during FY 2015. Alpha Company's December 31,2015 allowance for uncollectible accounts was $2,700. Under the aging method, what amounts should Alpha Company report at December 31, 2016 for
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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