Duncan Corporation uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered young and have a 6% uncollectible rate. Accounts more than 60 days are considered old and have a 37% uncollectible rate. Duncan's Allowance for doubtful accounts currently has an unadjusted credit balance of $3,000. If Duncan has $59,700 of young accounts and $8,000 of old accounts, how much should be reported in the adjusted Allowance for doubtful accounts?
Duncan Corporation uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered young and have a 6% uncollectible rate. Accounts more than 60 days are considered old and have a 37% uncollectible rate. Duncan's Allowance for doubtful accounts currently has an unadjusted credit balance of $3,000. If Duncan has $59,700 of young accounts and $8,000 of old accounts, how much should be reported in the adjusted Allowance for doubtful accounts?
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter16: Accounting For Accounts Receivable
Section: Chapter Questions
Problem 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...
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