Reference no: EM133144800

Question - Computing Bad Debt Expense Using Aging of Accounts Receivable Method - Young and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts. Accounts less than sixty days are considered young and have a 5 percent uncollectible rate. Accounts more than sixty days are considered old and have a 35 percent uncollectible rate.

Required -

1. If YOC has $212,000 of young accounts and $480,000 of old accounts, how much should be reported in the Allowance for Doubtful Accounts?

2. If YOC's Allowance for Doubtful Accounts currently has an unadjusted credit balance of $42,500, how much should be credited to the account?

3. If YOC's Allowance for Doubtful Accounts has an unadjusted debit balance of $17,000, how much should be credited to the account?