Question
Artis, Inc. uses the aging of accounts receivable method for estimating uncollectible accounts. As of October 31, total Accounts Receivable was $17,800 of which $8,400
Artis, Inc. uses the aging of accounts receivable method for estimating uncollectible accounts. As of October 31, total Accounts Receivable was $17,800 of which $8,400 was 0 - 30 days old; $5,900 was 31 - 60 days old; and the remainder was over 60 days old. Artis estimates 1% of accounts 0 - 30 days old will be uncollectible; 5% of accounts 31 - 60 days old will be uncollectible; and 15% of accounts over 60 days old will be uncollectible. How much is the adjustment for uncollectible accounts assuming the Allowance for Doubtful Accounts has a $610 credit balance
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