A company has the following balances on December 31, 2012, before any year-end adjustments: Accounts Receivable = $80,000; Allowance for Uncollectible Accounts = $1,100 (credit). The company estimates uncollectible accounts based on an aging of accounts receivable as shown below: Record the adjustment for uncollectible accounts on December 31, 2012.

Question

A company has the following balances on December 31, 2012, before any year-end adjustments: Accounts Receivable = $80,000; Allowance for Uncollectible Accounts = $1,100 (credit). The company estimates uncollectible accounts based on an aging of accounts receivable as shown below:  Record the adjustment for uncollectible accounts on December 31, 2012.

Quizplus · Accepted Answer

Adjustment = ($48,000 $\times$ 5%) + ($18,000 $\times$ 15%) + ($10,000 $\times$ 40%) + ($4,000 $\times$ 80%) - $1,100 = 11,200.

A Company Has the Following Balances on December 31, 2012