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Question
At the end of the year, a company has the following accounts receivable and estimates of uncollectible accounts:
1. Accounts not yet due = $70,000; estimated uncollectible = 4%.
2. Accounts 130 days past due = $30,000; estimated uncollectible = 15%.
3. Accounts more than 30 days past due = $5,000; estimated uncollectible = 40%.
Record the year-end adjustment for uncollectible accounts, assuming the current balance of the Allowance for Uncollectible Accounts is $1,200 (debit).
Answer
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