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Question: Bradley Company reports the following accounts receivable information at year end:
A/R, current $100,000
A/R, 1-30 days past due 9,000
A/R, over 30-days past due 12,000
The company estimates that 1% of current accounts, 10% of accounts 1-30 days past due, and 15% of accounts over 30 days past due will be uncollectible. Bradley reports a credit balance of $500 in Allowance for Uncollectible Accounts before the year-end adjustment. Using the aging-of-accounts method, what is the amount of Uncollectible Account Expense for the year?
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