Duncan Corporation uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered young and have a 2% uncollectible rate. Accounts more than 60 days are considered old and have a 34% uncollectible rate. Duncan's Allowance for doubtful accounts currently has an unadjusted credit balance of $2,500. If Duncan has $68,400 of young accounts and $14,200 of old accounts, how much should be reported in the adjusted Allowance for doubtful accounts?

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Chapter5: Sales And Receivables
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QUESTION 5
Duncan Corporation uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered
young and have a 2% uncollectible rate. Accounts more than 60 days are considered old and have a 34% uncollectible rate.
Duncan's Allowance for doubtful accounts currently has an unadjusted credit balance of $2,500.
If Duncan has $68,400 of young accounts and $14,200 of old accounts, how much should be reported in the adjusted Allowance
for doubtful accounts?
Transcribed Image Text:QUESTION 5 Duncan Corporation uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered young and have a 2% uncollectible rate. Accounts more than 60 days are considered old and have a 34% uncollectible rate. Duncan's Allowance for doubtful accounts currently has an unadjusted credit balance of $2,500. If Duncan has $68,400 of young accounts and $14,200 of old accounts, how much should be reported in the adjusted Allowance for doubtful accounts?
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