The correct answer is B) $1,350.
Supporting calculations:
Accounts Receivable (a) | Expected % of Uncollectible (b) | Amount of Expected Uncollectibles (a*b) |
$75,000 | 1% | $750 |
$20,000 | 5% | $1,000 |
$4,000 | 10% | $400 |
$1,000 | 20% | $200 |
Expected uncollectibles | $2,350 | |
Less: Credit balance in allowance for uncollectibles | ($1,000) | |
Amount required for adjusting entry using aging of the accounts | $1,350 |
Therefore, amount required for adjusting entry using aging method is $1,350.
Suppose the Conner Company has an accounts receivable balance of $100,000 on December 31, 2016. History...
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