Young and Old Corporation (YOC) uses two aging categorles to estimate uncollectible accounts. Accounts less than sixty days are considered young and have a 5 percent uncollectible rate. Accounts more than sixty days are considered old and have a 35 percent uncollectible rate. Required: 1. If YOC has $100,000 of young accounts and $400,000 of old accounts, how much should be reported In the Allowance for Doubtful Accounts? Allowance for doubtful accounts 2. If YOC's Allowance for Doubtful Accounts currently has an unadjusted credit balance of $40,000, how much should be credited to the account? Allowance for doubtful accounts 3. If YOC's Allowance for Doubtful Accounts has an unadjusted debit balance of $5.000, how much should be credited to the account? Allowance for doubtful accounts
Young and Old Corporation (YOC) uses two aging categorles to estimate uncollectible accounts. Accounts less than sixty days are considered young and have a 5 percent uncollectible rate. Accounts more than sixty days are considered old and have a 35 percent uncollectible rate. Required: 1. If YOC has $100,000 of young accounts and $400,000 of old accounts, how much should be reported In the Allowance for Doubtful Accounts? Allowance for doubtful accounts 2. If YOC's Allowance for Doubtful Accounts currently has an unadjusted credit balance of $40,000, how much should be credited to the account? Allowance for doubtful accounts 3. If YOC's Allowance for Doubtful Accounts has an unadjusted debit balance of $5.000, how much should be credited to the account? Allowance for doubtful accounts
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Young and Old Corporation(YOC) uses two aging categorles to estimate uncollectible accounts. Accounts less than sixty days are
considered young and have a 5 percent uncollectible rate. Accounts more than sixty days are considered old and have a 35 percent
uncollectible rate.
Requlred:
1. If YOC has $100,000 of young accounts and $400,000 of old accounts, how much should be reported In the Allowance for Doubtful
Accounts?
Allowance for doubtful accounts
2. If YOC's Allowance for Doubtful Accounts currently has an unadjusted credit balance of $40,000, how much should be credited to
the account?
Allowance for doubtful accounts
3. If YOC's Allowance for Doubtful Accounts has an unadjusted deblt balance of $5,.000, how much should be credited to the account?
Allowance for doubtful accounts
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