A Company Had the Following Items and Amounts in Its

question 215

Essay

A company had the following items and amounts in its unadjusted trial balance as of December 31 of the current year:
$\begin{array} { l r r } &&\text { Estimated } \\&&\text { Uncollectible } \\\text { Account Age } & \text { Balance } &\text { Percentage }\\\hline \text { Current (not yet due) } & \$ 96,000 & 1.0 \% \\1 - 30 \text { days past due } & 64,000 & 2.5 \% \\30 - 60 \text { days past due } & 16,000 & 11.0 \% \\61 - 90 \text { days past due } & 6,500 & 37.0 \% \\\text { Over } 90 \text { days past due } & \underline { 3,200 } & 70.0 \% \\\text { Total } & \underline { \$ 185,700 } &\end{array}$
1. Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31, of the current year, balance sheet.
2. Prepare the adjusting journal entry to record bad debts expense for the current year .

Understand the basic concept of interest rates and how they are calculated.

Define and distinguish between different financial markets and institutions.

Understand the role of risk and risk premiums in investments.

Calculate economic profit or loss based on investment returns and interest rates.

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Definitions:

Receiver

An individual or entity that gets or accepts something that has been sent or given to them.

Evaluative Feedback

Feedback that judges the quality or value of someone's performance or work, often with suggestions for improvement.

Projects

Individual or collaborative enterprise that is carefully planned to achieve a particular aim.

Electronic Grapevine

The informal transmission of information, rumors, or gossip among individuals within an organization through electronic means, such as email or social media.