QUESTION:

Alpha Company uses aging of Accounts Receivable to estimate uncollectible. The unadjusted Trial Balance amount of Accounts Receivable on December 31, 2016, has a balance that consists of:

Days outstanding	Amount	Estimated Uncollectible
0 60	$300,000	1%
61 120	90,000	2%
Over 120	100,000	6%
Total	$490,000	4,005

Activity during Fiscal Year 2016, for Alpha Company consisted of:

July 15 Alpha wrote of the Bravo Zulu Company account as not collectable for the amount of $8,500.

Oct. 20 Alpha company recovered $5,500 from the Charlie Delta Company for settlement of their prior debt that had been

off during FY 2015.

Alpha Companys December 31, 2015 allowance for uncollectible accounts was $2,700/ Under the aging method, what amounts should Alpha Company report at December 31, 2016 for:

1. Allowance for Uncollectible Accounts

2. Bad Debt Expense

ANSWER :

1.___________________________

2.___________________________