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 $1 - 30$ 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).

Question

Quizplus · Accepted Answer

Allowance for Uncollectible Accounts$\quad$10,500
 Adjustment = ($70,000 $\times$ 4%) + ($30,000 $\times$ 15%) + ($5,000 $\times$ 40%) + $1,200 = $10,500.

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