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Question - Baltimore Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of:
Dollar Value Age of Account Estimated Collectible
$150,000 < 30 days old 99%
65,000 30 to 60 days old 88%
40,000 61 to 120 days old 80%
8,000 > 120 days old 20%
The current unadjusted Allowance for Uncollectible Accounts balance is a debit balance of $2,000 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, calculate the dollar balances in the Allowance for Doubtful Accounts? Round to nearest whole dollar.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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