Young and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts. Accounts less than...

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Young and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are 3. If YOCs Allowance for Doubtful Accounts has an unadjusted debit balance of $5,000, how much should be credited to the acc

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Answer 1

Answer #1

1. Amount to be reported [($100,000 x 5%) + ($400,000 x 40%)]	$165,000
2. Amount to be credited [$165,000 - $40,000]	$125,000
3. Amount to be credited [$165,000 + $5,000]	$170,000

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Answer 2

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