Question: At December 31 2014 before any year end adjustments the Accounts

At December 31, 2014, before any year-end adjustments, the Accounts Receivable balance of RTS Manufacturing is $260,000. Te Allowance for Doubtful Accounts has a $16,000 credit balance. RTS Manufacturing prepares the following aging schedule for Accounts Receivable:

1. Based on the aging of Accounts Receivable, is the unadjusted balance of the Allowance account adequate? Too high? Too low?
2. Make the entry required by the aging schedule. Prepare a T-account for the allowance.
3. Show how RTS Manufacturing will report Accounts Receivable on its December 31 balancesheet.

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  • CreatedJuly 25, 2014
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