answer 7-03 part C

CALCULATOR PRINTER VERSION HACK NEXT Problem 7.0.3 (Part Level Submission) Teal Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Teal's Accounts Receivable account was $591,900 and Allowance for Doubtful Accounts had a credit balance of $44,990. The year end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Probability of Days Account Outstanding Amount Collection Less than 56 days $314,500 0.98 Between 16 and 30 days $12.400 0.00 Between 31 and 45 days 85.000 0.56 Between 46 and 60 days 14,200 0.79 Between 6 and 75 days 19,900 0.55 Over 5 days to be written of 15.000 0.00 Your anwer is correct What is the appropriate balance for Allowance for Doubt Accounts rond! Balance force for tful Accouts (a) Your answer is correct. What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for Allowance for Doubtful Accounts 47667 SHOW SOLUTION LINK TO TEXT (b) Your answer is correct. Show how accounts receivable would be presented on the balance sheet. TEAL CORPORATION Balance Sheet (Partial) Accounts Receivable 576000 Less Allowance for Doubtful Accounts 47667 Net Accounts Receivable 528333 dy. SHOW SOLUTION LINK TO TEXT (c) x Your answer is incorrect. Try again. What is the dollar effect of the year-end bad debt adjustment on the before tax income? Dollar effect of the year-end bad debt adjustment decrease LINK TO TEXT