Alpha Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2016,
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Question:
Dollar Value | Age of Account | Estimated Collectible |
$125,000 | < 30 days old | 98% |
85,000 | 30 to 60 days old | 85% |
50,000 | 61 to 120 days old | 50% |
10,000 | > 120 days old | 10% |
The current unadjusted Allowance for Uncollectable Accounts balance is a credit balance of $1,575 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the:
1. Accounts Receivable
2. Allowance for Doubtful Accounts
3. Bad Debt Expense
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
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