A company has the following unadjusted account balances at December 31, of the current year; Accounts...

 

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A company has the following unadjusted account balances at December 31, of the current year; Accounts Receivable of $183,400 and Allowance for Doubtful Accounts of $1,600 (credit balance). The company uses the aging of accounts receivable to estimate its bad debts. The following aging schedule reflects its accounts receivable at the current year-end: Estimated Uncollectible Percentage Account Age Balance Current (not yet due) $106,000 2.0% 1-30 days past due 54,000 4.0% 30-60 days past due 12,000 10.0% 61-90 days past due 8,500 25.0% Over 90 days past due 2,900 75.0% Total $183,400 Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31, of the current year, balance sheet. A company has the following unadjusted account balances at December 31, of the current year; Accounts Receivable of $183,400 and Allowance for Doubtful Accounts of $1,600 (credit balance). The company uses the aging of accounts receivable to estimate its bad debts. The following aging schedule reflects its accounts receivable at the current year-end: Estimated Uncollectible Percentage Account Age Balance Current (not yet due) $106,000 2.0% 1-30 days past due 54,000 4.0% 30-60 days past due 12,000 10.0% 61-90 days past due 8,500 25.0% Over 90 days past due 2,900 75.0% Total $183,400 Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31, of the current year, balance sheet.

Answer rating: 100% (QA)

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