What amounts should alpha company report at december

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QUESTION: Alpha Company uses aging of Accounts Receivable to estimate uncollectible. The unadjusted Trial Balance amount of Accounts Receivable on December 31, 2016, has a balance that consists of:

Days outstanding

Amount

Estimated Uncollectible

0 - 60

$300,000

1%

61 - 120

90,000

2%

Over 120

100,000

6%

Total

$490,000


Activity during Fiscal Year 2016, for Alpha Company consisted of:

July 15 Alpha wrote of the Bravo Zulu Company account as not collectable for the amount of $8,500.

Oct. 20 Alpha company recovered $5,500 from the Charlie Delta Company for settlement of their prior debt that had been off during FY 2015.

Alpha Company's December 31, 2015 allowance for uncollectible accounts was $2,700/ Under the aging method, what amounts should Alpha Company report at December 31, 2016 for:

1. Allowance for Uncollectible Accounts

2. Bad Debt Expense

Reference no: EM131693708

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