Question
At the end of the current year (before adjusting entries), Orange Corporation had a balance of $88,000 in Accounts Receivable and a credit balance
At the end of the current year (before adjusting entries), Orange Corporation had a balance of $88,000 in Accounts Receivable and a credit balance of $9,000 in Allowance for Uncollectible Accounts. Service revenue (all on credit) for the year totaled $420,000. Requirement 1. Assume that Orange Corporation uses the aging-of-receivables method. Orange Corporation estimates that its Allowance for Uncollectible Accounts should have a credit balance of $17,000. Calculate the amount of its Uncollectible-Account Expense. What is the ending balance of the Allowance for Uncollectible Accounts under this scenario? Orange 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.
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