Your answer is partially correct. What is the dollar effect of the year-end bad debt adjustment on the before-tax income? Dollar effect of the year-end bad debt adjustment $ eTextbook and Media $ decrease Nash Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Nash's Accounts Receivable account was $592,700 and Allowance for Doubtful Accounts had a credit balance of $40,680. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Probability of Days Account Outstanding Amount Collection Less than 16 days $314,400 0.96 Between 16 and 30 days 116,600 0.90 Between 31 and 45 days 85,600 0.86 Between 46 and 60 days 41.900 0.79 Between 61 and 75 days 18,600 0.53 Over 75 days (to be written off) 15,600 0.00 (a)
Your answer is partially correct. What is the dollar effect of the year-end bad debt adjustment on the before-tax income? Dollar effect of the year-end bad debt adjustment $ eTextbook and Media $ decrease Nash Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Nash's Accounts Receivable account was $592,700 and Allowance for Doubtful Accounts had a credit balance of $40,680. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Probability of Days Account Outstanding Amount Collection Less than 16 days $314,400 0.96 Between 16 and 30 days 116,600 0.90 Between 31 and 45 days 85,600 0.86 Between 46 and 60 days 41.900 0.79 Between 61 and 75 days 18,600 0.53 Over 75 days (to be written off) 15,600 0.00 (a)
Chapter6: Business Expenses
Section: Chapter Questions
Problem 44P
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Question
Answer this last accounting question please!
Transcribed Image Text:Your answer is partially correct.
What is the dollar effect of the year-end bad debt adjustment on the before-tax income?
Dollar effect of the year-end bad debt adjustment
$
eTextbook and Media
$
decrease
Transcribed Image Text:Nash Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Nash's
Accounts Receivable account was $592,700 and Allowance for Doubtful Accounts had a credit balance of $40,680. The year-end
balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below.
Probability of
Days Account Outstanding
Amount
Collection
Less than 16 days
$314,400
0.96
Between 16 and 30 days
116,600
0.90
Between 31 and 45 days
85,600
0.86
Between 46 and 60 days
41.900
0.79
Between 61 and 75 days
18,600
0.53
Over 75 days (to be written off)
15,600
0.00
(a)
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