Reference no: EM132379382

Question

Freemont Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2016, Accounts Receivable has a balance that consists of:

Dollar Value Age of Account Estimated Collectible

$115,000 < 30 days old 98%

$65,000 30 to 60 days old 85%

$20,000 61 to 120 days old 75%

$5,000 > 120 days old 10%

The current unadjusted Allowance for Uncollectable Accounts balance is a credit balance of $2,500 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the:

1. Accounts Receivable

2. Allowance for Doubtful Accounts

3. Bad Debt Expense