Question

During 2015, Bears Inc. recorded credit sales of $680,000.Before adjustments at year-end, Bears has accounts receivable of$300,000, of which $51,000 is past due, and the allowance accounthad a credit balance of $2,700. Using the aging of receivablesapproach, what would be the adjustment assuming Bears expects itwill not to collect 10% of the amount not yet past due and 24% ofthe amount past due?

Bad Debt Expense  

39,840

 

       Allowance forUncollectible accounts

 

39,840

 

Allowance forUncollectible accounts   

34,440

 

       Bad Debt Expense

 

34,440

 

Bad Debt Expense  

34,440

 

       Allowance forUncollectible accounts

 

34,440

 

Bad Debt Expense  

37,140

 

       Allowance forUncollectible accounts

 

37,140

 

Place New Order
It's Free, Fast & Safe

"Looking for a Similar Assignment? Order now and Get a Discount!