Reference no: EM131750549

Problem - Alpha 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

$125,000              < 30 days old                      98%

85,000                   30 to 60 days old                85%

50,000                   61 to 120 days old              50%

10,000                   > 120 days old                   10%

The current unadjusted Allowance for Uncollectable Accounts balance is a credit balance of $1,575 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