At the end of the year, a company has the following accounts receivable and estimates of uncollectible accounts: 1. Accounts not yet due $= \$ 80,000$; estimated uncollectible $= 2 \%$.
2. Accounts $1 - 30$ days past due $= \$ 20,000$; estimated uncollectible $= 25 \%$.
3. Accounts more than 30 days past due $= \$ 4,000$; estimated uncollectible $= 60 \%$. Record the year-end adjustment for uncollectible accounts, assuming the current balance of the Allowance for Uncollectible Accounts is $900 (credit).

Question

Quizplus · Accepted Answer

Allowance for Uncollectible Accounts$\quad$8,100
 Adjustment = ($80,000 $\times$ 2%) + ($20,000 $\times$ 25%) + ($4,000 $\times$ 60%) - $900 = $8,100.

At the End of the Year, a Company Has the Following