TB TF Qu. 5-100 (Static) Barton Corporation uses the aging of... Barton Corporation uses the aging of accounts receivable method of accounting for uncollectible accounts. As of December 31, Year prior to estimating uncollectible accounts expense, Barton's balance of accounts receivable was $68,900, the balance of allowance fo doubtful accounts was $2,500, and total sales for Year 1 were $875,000. On December 31, Year 1, Barton aged its receivables and determined the following: Number of Days Past Due Current 0-30 31-56 61-90 Over 90 Total Receivables Amount $29,500 16,700 11,000 9,400 2,300 $68,906 % Likely to Be Uncollectible 1 5% 10% 25% 50% Indicate whether each of the following statements is true or false. a) Barton will report net realizable value of receivables equal to $63 170 on its December 31, Year 1 balance sheet. b) Barton will report uncollectible accounts expense of $5,730 on its Year 1 income statement. c) The December 31 adjusting entry related to uncollectible accounts will increase liabilities and decrease stockholders' equity by $3,230 d) The method Barton uses to account for uncollectible accounts is known as the balance sheet approach e) Write-offs of uncollectible accounts in Year 2 will reduce Barton's net realizable value of receivables