An Aging of Sernett Company's Accounts Receivable at the End

question 23

Essay

An aging of Sernett Company's accounts receivable at the end of 2014 yielded the following information about the lengths of time that the receivables had been outstanding:
The balance in the Allowance for Doubtful Accounts before adjustments was $310.
Based on the preceding information,
a) What should be the balance in the Allowance for Doubtful Accounts after the adjusting entry?
b) What is the amount of uncollectible accounts expense that should be reported on the income statement?

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Definitions:

Retina

A layer at the back of the eyeball containing cells sensitive to light, which trigger nerve impulses that pass via the optic nerve to the brain.

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, responsible for focusing most of the light that enters the eye.

Pupil

The opening in the center of the iris of the eye, through which light enters and is regulated in size to control the amount of light that enters.

Optic Nerve

The nerve that transmits visual information from the retina to the brain.