Question 9

To increase revenue MGM extends credit to gamblers and uses the Aging of Receivables Allowance method to record bad debt expense. The following table (in millions) shows the ages of the accounts receivables and MGM's estimates of the uncollectible amounts. Based on the chart below what is the total amount of Receivables the MGM expects will be uncollectible? $1,230 If MGM's balance in Allowance for Doubtful accounts before the adjusting journal entry is a credit balance of $10m what amount should the adjusting entry be for? [Select] To record bad debt expense MGM will record a debit to [Select] and a credit to [ Select] Age of Receivable Estimated Uncollectible Dollar value of Receivable $1,000 $150 2% 15% 1-30 days old 31-60 days old Greater than 60 days old Total Accounts Receivable Balance $80 50% $1,230