Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alpha Company uses aging to estimateuncollectibles.At the end of the fiscal year, December 31, 2016, Accounts Receivable has a balance that consists of: Dollar Value

Alpha Company uses aging to estimateuncollectibles.At the end of the fiscal year, December 31, 2016, Accounts Receivable has a balance that consists of:

Dollar Value Age of Account Estimated Collectible

$125,000 < 30 days old 98%

85,000 30 to 60 days old 85%

50,000 61 to 120 days old 50%

10,000 > 120 days old 10%

The current unadjusted Allowance for Uncollectable Accounts balance is a debit balance of $1,575 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the:

1. Accounts Receivable

2. Allowance for Doubtful Accounts

3. 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

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

Auditing Cases An Active Learning Approach

Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt

2nd Edition

0130674842, 978-0130674845

Students also viewed these Accounting questions