At the end of the current year $($before adjusting entries$),$ Apple Corporation had a balance of $$78,000$ in Accounts Receivable and a credit balance of $$13,000$ in Allowance for Uncollectible Accounts. Service revenue $($all on credit$)$ for the year totaled $$420,000.$

Read the requirements.

Requirement $1.$ Using the percent$-$of$-$sales method, calculate the amount of Uncollectible$-$Account Expense if Apple Corporation estimates its uncollectible$-$account expense using a rate of $3\%$ of credit sales. What is the ending balance of the Allowance for Uncollectible Accounts under this scenario?

Apple Corporation has of uncollectible$-$account expense using the percent$-$of$-$sales method. The ending balance of the Allowance for Uncollectible Accounts is under this scenario.

Requirement $2.$ Now assume that Apple Corporation uses the aging$-$of$-$receivables method. Apple Corporation estimates that its Allowance for Uncollectible Accounts should have a credit balance of $$25,000.$ Calculate the amount of its Uncollectible$-$Account Expense. What is the ending balance of the Allowance for Uncollectible Accounts under this scenario?

Apple Corporation has of uncollectible$-$account expense using the aging$-$of$-$receivables method. The ending balance of the Allowance for Uncollectible Accounts is under this scenario.