Question
At December 31, 2020, before any year-end adjustments, the Accounts Receivable balance of Electrified Auto Ltd. is $1242000. The companys Allowance for Uncollectible Accounts has
At December 31, 2020, before any year-end adjustments, the Accounts Receivable balance of Electrified Auto Ltd. is $1242000. The companys Allowance for Uncollectible Accounts has a $7,500 credit balance. Electrified Auto Ltd. prepares the following aging schedule for its accounts receivable:
Total Balance | 0-30 Days | 31-60 Days | 61-90 Days | Over 90 Days |
$1242000 | $677000 | $416000 | $115000 | $34000 |
Estimated uncollectible | 0.5% | 1.0% | 15% | 40% |
Required:
What should be the company's ending balance of Allowance for Uncollectible Accounts? Round your answer to the nearest dollar.
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