Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alpha Company uses aging of Accounts Receivable to estimate uncollectibles. The unadjusted Trial Balance amount of Accounts Receivable on 12/31/16 has a balance that consists

Alpha Company uses aging of Accounts Receivable to estimate uncollectibles. The unadjusted Trial Balance amount of Accounts Receivable on 12/31/16 has a balance that consists 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 FY 16, for Alpha Company consisted of:

July 15

Alpha wrote off the Bravo Zuly Company account as not collectible for the amount 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 12/31/15 allowance for uncollectible accounts was 2,500. Under the aging method, what amounts should Alpha Company report at 12/31/16 for:

1. Allowance for Uncollectible Accounts

2. Bad Debt

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

An Audit Of Police Oversight In Africa

Authors: African Police Oversight Forum

1st Edition

1920299173, 978-1920299170

More Books

Students also viewed these Accounting questions

Question

Determine whether the series is convergent or divergent. * + 1 -1

Answered: 1 week ago

Question

c. What groups were least represented? Why do you think this is so?

Answered: 1 week ago