Young and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered young and have a 4% uncollectible rate. Accounts more than 60 days are considered old and have a 35% uncollectible rate.

E8-6 (Algo) Computing Bad Debt Expense Using Aging of Accounts Receivable Method (LO 8- 2) Young and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered young and have a 4% uncollectible rate. Accounts more than 60 days are considered old and have a 35% uncollectible rate. Required: 1. If YOC has $110,000 of young accounts and $500,000 of old accounts, how much should be reported in the Allowance for Doubtful Accounts? 2. If YOC's Allowance for Doubtful Accounts currently has an unadjusted credit balance of $50,000, how much should be credited to the account? 3. If YOC's Allowance for Doubtful Accounts has an unadjusted debit balance of $6,000, how much should be credited to the account? 1. Amount to be Reported $ 615,000 565,000 2. Amount to be Credited $ 3. Amount to be Credited