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How do you determine the required balance in the Allowance for Doubtful Accounts and the carrying amount of the accounts receivable for the example below?
How do you determine the required balance in the Allowance for Doubtful Accounts and the carrying amount of the accounts receivable for the example below? Please show work!
Pharoah Co. uses an aging schedule to determine its estimated uncollectible accounts at December 31. Complete the following schedule. Number of Days Outstanding Accounts Receivable Estimated % Uncollectible Estimated Uncollectible Accounts 0-30 days $273,000 1% 2,730 31-60 days 84,000 4% 3,360 61-90 days 42,000 10% 4,200 Over 90 days 21,000 20% - 4,200 Total $420,000 14490 Determine the required balance in the Allowance for Doubtful Accounts and the carrying amount of the accounts receivable. Allowance for doubtful accounts Carrying amountStep by Step Solution
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