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Bonita Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Bonita's Accounts Receivable account
Bonita Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Bonita's Accounts Receivable account was $591,800 and Allowance for Doubtful Accounts had a credit balance of $43,510. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Days Account Outstanding Less than 16 days Between 16 and 30 days Between 31 and 45 days Between 46 and 60 days Between 61 and 75 days Over 75 days (to be written off) (a) Your answer is correct. (b) Amount $313,000 115,300 eTextbook and Media 82,800 43,600 20,700 16,400 Balance for allowance for doubtful accounts Probability of Collection What is the appropriate balance for Allowance for Doubtful Accounts at year-end? BONITA CORPORATION Balance Sheet (Partial) LA 0.96 0.90 LA 0.85 $ 0.81 0.55 Show how accounts receivable would be presented on the balance sheet. 0.00 54069 Attempts: 1 of 10 used SUPPORT
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