E$8-6($Algo$)$ Computing Bad Debt Expense Using Aging of Accounts Receivable Method $[$LO $8-2]$

Young and Old Corporation $($YOC$)$ uses two aging categories to estimate uncollectible accounts. Accounts less than $60$ days are considered young and have a $3\%$ uncollectible rate. Accounts more than $60$ days are considered old and have a $35\%$ uncollectible rate.

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Required:

If YOC has $$111,000$ of young accounts and $$390,000$ of old accounts, how much should be reported in the Allowance for Doubtful Accounts?

If YOC$$s Allowance for Doubtful Accounts currently has an unadjusted credit balance of $$39,000,$ how much should be credited to the account?

If YOC$$s Allowance for Doubtful Accounts has an unadjusted debit balance of $$4,900,$ how much should be credited to the account?

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