The aging of accounts receivable shows the following data: 0-60 days due: balance is $74,500 with a 3% estimated uncollectible Over 60 days past due: balance is $4,000 with a 24% estimated uncollectible The current balance of Allowance for Bad Debits is a $500 CR Using the aging of receivables method, what is the balance of Allowance for Bad Debt?      $3,195 DR            $3,195 CR            $3,695 CR            $2,695 CR

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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The aging of accounts receivable shows the following data:

0-60 days due: balance is $74,500 with a 3% estimated uncollectible

Over 60 days past due: balance is $4,000 with a 24% estimated uncollectible

The current balance of Allowance for Bad Debits is a $500 CR

Using the aging of receivables method, what is the balance of Allowance for Bad Debt?

 

  
$3,195 DR
 
 
 
 
  
$3,195 CR
 
 
 
 
  
$3,695 CR
 
 
 
 
  
$2,695 CR
 
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