At December 31, 2021, before any year-end adjustments, the Accounts Receivable balance of Alpha Company, Inc., is

Question:

At December 31, 2021, before any year-end adjustments, the Accounts Receivable balance of Alpha Company, Inc., is $390,000. The Allowance for Uncollectible Accounts has a $15,500 credit balance. Alpha prepares the following aging schedule for Accounts Receivable:

Requirements

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 Alpha will report Accounts Receivable on its December 31 balance sheet.

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Financial Accounting

ISBN: 9780136899037

13th Edition

Authors: C. William Thomas, Wendy M Tietz

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Question Posted: Feb 13, 2023 06:03 AM

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At December 31, 2021, before any year-end adjustments, the Accounts Receivable balance of Alpha Company, Inc., is

Question:

Total Balance $390,000 Estimated uncollectible 1-30 Days $160,000 0.6% Age of Accounts 61-90 Days $80,000 5.0% 31-60 Days $120,000 2.0% Over 90 Days $30,000 40.0%

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Req 1 The credit balance at December 31 in Allowance for Uncollectible Accounts should b...View the full answer

Financial Accounting

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