Solution-Calculate the amount of the allowance for doubtful

Calculate the amount of the allowance for doubtful accounts

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Reference no: EM132473513

Fife, Inc. has the following account balances at December 31, 2005: Accounts Receivable $185,600 and Allowance for Doubtful Accounts $1,600 (credit balance). Fife uses the aging of accounts receivable to estimate bad debts.

The following aging schedule reflects the situation at year-end:

Account Age	Age Group Balance	Estimated Uncollectible Percentage
Current	$96,000	2.0
1-30 days past due	64,000	5.0
31-60 days past due	16,000	15.0
61-90 days past due	6,400	35.0
Over 90 days past due	3,200	45.0

Question 1: Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31, 20X5, balance sheet.

Question 2: Prepare the journal entry to record 20X5 bad debts expense.

Reference no: EM132473513

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Calculate the amount of the allowance for doubtful accounts

Reference no: EM132473513

Reference no: EM132473513

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