Question
Young and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts. Accounts less than sixty days are considered young and have a 10
Young and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts. Accounts less than sixty days are considered young and have a 10 percent uncollectible rate. Accounts more than sixty days are considered old and have a 30 percent uncollectible rate. Required:
1. If YOC has $191,000 of young accounts and $465,000 of old accounts, how much should be reported in the Allowance for Doubtful Accounts?
2. If YOCs Allowance for Doubtful Accounts currently has an unadjusted credit balance of $38,000, how much should be credited to the account?
3. If YOCs Allowance for Doubtful Accounts has an unadjusted debit balance of $14,750, how much should be credited to the account?
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