Rose Co operates in an industry that has a high rate of bad debts Before any year end adjustments, the balance in Roses Accounts Receivable was $4,440,000 and Allowance for Doubtful Accounts had a credit balance of $320,000 The year end balance reported in the statement of financial position for Allowance for Doubtful Accounts will be based on the following aging schedule Days Account Outstanding Less than 16 days 1630 days 31 45 days 46 60 days 61 75 days Over 75 days Amount $2,400,000 800,000 640,000 320,000 160,000 120,000 Probability of Collection 98 90 85 80 55 00 Required What is the appropriate balance for Allowance for Doubtful Accounts at year end

Question

Rose Co  operates in an industry that has a high rate of bad debts  Before any year end adjustments, the balance in Roses Accounts Receivable was $4,440,000 and Allowance for Doubtful Accounts had a credit balance of $320,000  The year end balance reported in the statement of financial position for Allowance for Doubtful Accounts will be based on the following aging schedule  Days Account Outstanding Less than 16 days 1630 days 31 45 days 46 60 days 61 75 days Over 75 days Amount $2,400,000 800,000 640,000 320,000 160,000 120,000 Probability of Collection  98 90  85  80  55  00 Required  What is the appropriate balance for Allowance for Doubtful Accounts at year end

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Rose Co. operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Roses Accounts Receivable was

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