Question: Trump Agency separates its accounts receivable into three age groups

Trump Agency separates its accounts receivable into three age groups for purposes of estimating the percentage of uncollectible accounts.
1. Accounts not yet due= $25,000; estimated uncollectible= 4%.
2. Accounts 1–60 days past due= $10,000; estimated uncollectible= 25%.
3. Accounts more than 60 days past due= $5,000; estimated uncollectible= 50%.
In addition, the balance of Allowance for Uncollectible Accounts before adjustment is $1,000 (credit). Compute the total estimated uncollectible accounts and record the year-end adjustment.


View Solution:


Sale on SolutionInn
Sales10
Views779
Comments
  • CreatedJuly 15, 2014
  • Files Included
Post your question
5000