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Three parts to this problem: Using the aging schedule in the exercise, calculate and report the ending balance of the Allowance for Uncollectible Accounts (Allowance
Three parts to this problem:
- Using the aging schedule in the exercise, calculate and report the ending balance of the Allowance for Uncollectible Accounts (Allowance for Doubtful Accounts).
- If the beginning balance of the Allowance for Uncollectible Accounts is $1,100, and the ending balance is the amount calculated in (1) above, the difference is the amount by which the Allowance for Uncollectible Accounts needs to be adjusted. The needed increase to this Allowance account is an expense of the company. This expense is called Uncollectible Accounts Expense (Bad Debts Expense). Prepare the financial statement effects template (accounting equation & Net Income calculation) to show this adjustment.
- What is the amount of net Accounts Receivable that would be reported on the Balance Sheet at December 31?
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