Oceanside Company uses the balance sheet approach in estimating uncollectible accounts expense. Its Allowance for Doubtful Accounts has a $2,400 credit balance prior to adjusting entries. It has just completed an aging analysis of accounts receivable at December 31, Year 1. This analysis disclosed the following information: Age Group Total 76,000 $ $ 36,000 $ 25,000 Percentage Considered Uncollectible 18 28 10% Not yet due 1-30 days past due 31-60 past due What is the appropriate balance for Oceanside's Allowance for Doubtful Accounts at December 31, Year 1?

Oceanside Company uses the balance sheet approach in estimating uncollectible accounts expense. Its Allowance for Doubtful Accounts has a $2,400 credit balance prior to adjusting entries. It has just completed an aging analysis of accounts receivable at December 31, Year 1. This analysis disclosed the following information: Age Group Total 76,000 $ $ 36,000 $ 25,000 Percentage Considered Uncollectible 18 28 10% Not yet due 1-30 days past due 31-60 past due What is the appropriate balance for Oceanside's Allowance for Doubtful Accounts at December 31, Year 1?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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