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?
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?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 84APSA: Aging Method Bad Debt Expense Cindy Bagnal, the manager of Cayce Printing Service, has provided the...
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