Alpha Company uses aging of Accounts Receivable to estimate uncollectible. The unadjusted Trial Balance amount of Accounts Receivable on December 31, 2016, has a – Online Homework Help

BUY Answers: Alpha Company uses aging of Accounts Receivable to estimate uncollectible. The unadjusted Trial Balance amount of Accounts Receivable on December 31, 2016, has a – Online Homework Help

QUESTION 7:

Alpha Company uses aging of Accounts Receivable to estimate uncollectible. The unadjusted Trial Balance amount of Accounts Receivable 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	$490,000

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 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