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Snead Company uses the aging method to adjust the allowance for uncollectible accounts at the end of the period. At December 31, 2016, the balance of accounts receivable is $210,000 and the allowance for uncollectible accounts has a credit balance of $3,000 (before adjustment). An analysis of accounts receivable produced the following age groups:Current ...........................................................$160,00060 days past due .............................................43,000Over 60 days past due.....................................7,000$210,000Based on past experience, Snead estimates that the percentage of accounts that will prove to be uncollectible within the three age groups is 4%, 10%, and 18% respectively. Based on these facts, the net receivables on the balance sheet as of December 31, 2016, are.
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Snead Company uses the aging method to adjust the allowance for uncollectible accounts at the end of the period. At December 31, 2016, the balance of accounts receivable is $210,000 and the allowance for uncollectible accounts has a credit balance of $3,000 (before adjustment). An analysis of accounts receivable produced the following age groups:Current ..................................................................$160,00060 days past due ....................................................43,000Over 60 days past due.............................................7,000$210,000Based on past experience, Snead estimates that the percentage of accounts that will prove to be uncollectible within the three age groups is 4%, 10%, and 18% respectively. Based on these facts, the adjusting entry for uncollectible accounts should be made in the amount of
Milo Companyusesthepercent-of-salesmethodtoestimateuncollectible.Netcreditsalesforthecurrentyearamountto$100,000andmanagementestimates 4%willbeuncollectible.Allowancefor Doubtful Accountspriortoadjustmenthasacreditbalanceof$3,000.ThebalanceofAllowanceforDoubtfulAccounts,afteradjustment,willbe
Milo Companyusesthepercent-of-salesmethodtoestimateuncollectible.Netcreditsalesforthecurrentyearamountto$100,000andmanagementestimates 4%willbeuncollectible.Allowancefor Doubtful Accountspriortoadjustmenthasacreditbalanceof$3,000.Theamountofexpensetoreportontheincomestatementwillbe
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