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accounts receivable aging method
Hi,
My question is how do I calculate the ending balance of the allowance for uncollectible accounts using the accounts receivable aging method? I am given A/R debit balance of $40,000, Allowance for Uncollectible Accounts has credit balance of $2,000. Net sales for the year $250,000. #% of net sales have proven uncollectible in the past. Aging of A/R accounts results in an estimate of $9,000. My attempt at this problem is as follows- $40,000 X 0.03 = $1,200 $1,200 debits to Uncollectible Accounts Expense $1,200 credits to Allowance for Uncollectible Accounts Current credit balance of $2000 Adjusting entry of $800 to bring current balance? Confused from here, please help |
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