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Question
A company has the following balances on December 31, 2015, before any year-end adjustments: Accounts Receivable = $80,000; Allowance for Uncollectible Accounts = $1,100 (credit). The company estimates uncollectible accounts based on an aging of accounts receivable as shown below:
| Age Group | Amount Receivable | Estimated Percent Uncollectible | ||
| Not yet due | $48,000 | 5% | ||
| 030 days past due | 18,000 | 15% | ||
| 3190 days past due | 10,000 | 40% | ||
| More than 90 days past due | 4,000 | 80% | ||
| Total | $80,000 |
Record the adjustment for uncollectible accounts on December 31, 2015.
Answer
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