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Homework answers / question archive / On March 31, there was an unadjusted credit balance of $1 ,000 in the allowance for uncollectible accounts
On March 31, there was an unadjusted credit balance of $1 ,000 in the allowance for uncollectible accounts. An analysis of trade accounts receivable at that date revealed the following: Estimated
Age
Amount Uncollectible
0-30 days $60,000 5% 31-60 days 4,000 10% Over 60 days 2,000 70%
What amount should be reported as allowance for uncollectible accounts in the March 31 balance sheet?
B. $4,000 C. $3,800 D. $3,000
Answer
A .
Explanation
Calculation of amount required to be recorded as allowance for uncollectible accounts in it's December 31 balance sheet:
| Age | Amount | Estimated uncollectible | Amount of estimated uncollectible |
| 0-30 days | 60000 | 5% | 3000 |
| 31-60 days | 4000 | 10% | 400 |
| Over 60 days | 2000 | 70% | 1400 |
| Total | 4800 |
So, Correct option is A "$4,800".
