Question
Beta Company uses aging to estimateuncollectibles.At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of: Dollar Value
Beta Company uses aging to estimateuncollectibles.At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of:
Dollar Value
Age of Account
Estimated Collectible
$250,000
< 30 days old
98.0%
70,000
30 to 60 days old
93.0%
40,000
61 to 120 days old
70.0%
5,000
> 120 days old
19.0%
The current unadjusted Allowance for UncollectibleAccounts balance is a debit balance of $2,000 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 theAllowance for Doubtful Accounts?Round to nearest whole dollar.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started