Question 7 (10 points) Alpha Company uses aging of Accounts Recelvable to estima

Question

Question 7 (10 points) Alpha Company uses aging of Accounts Recelvable to estimate uncollectible. The unadjusted Trial Balance amount of Accounts Recelvable on December 31, 2016, has a balance that consists of: Days outstanding Amount Estimated Uncollectible 0-60 300,000 1% 61-120 90,000 2% Over 120 100,000 6% Total 90,099 Activity during Fiscal Year 2016, for Alpha Company consisted of July 15 Alpha wrote of the Bravo Zulu Company account as not collectable for the amount of $8,500 Oct. 20 Alpha company recovered $5,500 from the Charlie Delta Company for settlement of their prior debt that had been written off during FY 2015. Alpha Company's December 31, 2015 allowance for uncollectible accounts was $2,700. Under the aging method, what amounts should Alpha Company report at December 31, 2016 for: 1. Allowance for Uncollectible Accounts 2. Bad Debt Expense

Explanation / Answer

1. Allowance for Uncollectible Accounts: $10,800

2. Bad Debt Expense: $11,100

Please post independent questions separately. Thank you.

Days outstanding Amount $ Estimated Uncollectible % $ 0 - 60 300000 1% 3000 61 - 120 90000 2% 1800 Over 120 100000 6% 6000 Total 490000 10800

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.