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Please solve with working The September 30, 2020, records of Stark Computers show: Debit Credit Accounts Receivable 110,000 Allowance for Uncollectible Accounts 4,100 At year-end,
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The September 30, 2020, records of Stark Computers show: Debit Credit Accounts Receivable 110,000 Allowance for Uncollectible Accounts 4,100 At year-end, Stark ages its receivables and adjusts the balance in Allowance for Uncollectible Accounts to correspond to the aging schedule. During the last quarter of 2020, Stark completed the following selected transactions: 2020: Oct. 31: Wrote off the following accounts receivable as uncollectible: Wholesale Foods, $300; Tony's Storage, $400; and Tiffany Energy, $1,100. Dec. 31: One of its customers, Cantalon Company, agreed to sign a 60-day notes receivable to replace a $1,200 accounts receivable due on that day. Dec. 31: Adjusted the Allowance for Uncollectible Accounts and recorded bad debt expense at year-end, based on the aging of receivables, which follows. Total Balance 0-30 Days 31-60 Days 61-90 Days Over 90 Days $80,000 $20,000 $4,000 $10,000 $110,000 Estimated Uncollectible: 0.50% 1.00% 5.00% 40.00% Requirements: 1. What is the amount for bad debt expense for 2020? 2. What is the accounts receivable on December 31, 2020Step by Step Solution
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