As of December 31,Mesa Company has a balance of $5,000 in trade receivables of which $500 is more than 30 days overdue.Mesa has a credit balance of $45 in the allowance for doubtful accounts.Mesa estimates its bad debts losses at 1% of current accounts and 10% of accounts over thirty days.What adjustment should Mesa make to the allowance for doubtful accounts?
A)$50 (credit).
B)$55 (credit).
C)$95 (credit).
D)None,the current balance is correct.

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The Answer of As of December 31,Mesa Company has a balance of $5,000 in trade receivables of which $500 is more than 30 days overdue.Mesa has a credit balance of $45 in the allowance for doubtful accounts.Mesa estimates its bad debts losses at 1% of current accounts and 10% of accounts over thirty days.What adjustment should Mesa make to the allowance for doubtful accounts?
A)$50 (credit).
B)$55 (credit).
C)$95 (credit).
D)None,the current balance is correct.

As of December 31,Mesa Company Has a Balance of $5,000