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At the end of the year a company has the following accounts receivable and estimates

At the end of the year, a company has the following accounts receivable and estimates of uncollectible accounts:

1. Accounts not yet due = $80,000; estimated uncollectible = 2%.

2. Accounts 1–30 days past due = $20,000; estimated uncollectible = 25%.

3. Accounts more than 30 days past due = $4,000; estimated uncollectible = 60%.

Record the year-end adjustment for uncollectible accounts, assuming the current balance of the Allowance for Uncollectible Accounts is $900 (credit).

 

 

154. At the end of the year, a company has the following accounts receivable and estimates of uncollectible accounts:

1. Accounts not yet due = $70,000; estimated uncollectible = 4%.

2. Accounts 1–30 days past due = $30,000; estimated uncollectible = 15%.

3. Accounts more than 30 days past due = $5,000; estimated uncollectible = 40%.

Record the year-end adjustment for uncollectible accounts, assuming the current balance of the Allowance for Uncollectible Accounts is $1,200 (debit).

 

 

155. A company has the following balances on December 31, 2015, before any year-end adjustments: Accounts Receivable = $80,000; Allowance for Uncollectible Accounts = $1,100 (credit). The company estimates uncollectible accounts based on an aging of accounts receivable as shown below:

 

Age Group

Amount Receivable

 

 

Estimated Percent Uncollectible

 

Not yet due

$48,000

 

5%

 

0–30 days past due

18,000

 

15%

 

31–90 days past due

10,000

 

40%

 

More than 90 days past due

4,000

 

80%

 

Total

$80,000

 

 

 

 

Record the adjustment for uncollectible accounts on December 31, 2015.

Jan 27 2020 View more View Less

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