At the End of the Year, a Company Has the Following

question 157

Essay

At the end of the year, a company has the following accounts receivable and estimates of uncollectible accounts: 1. Accounts not yet due $= \$ 70,000$ ; estimated uncollectible $= 4 \%$ .
2. Accounts $1 - 30$ days past due $= \$ 30,000$ ; estimated uncollectible $= 15 \%$ .
3. Accounts more than 30 days past due $= \$ 5,000$ ; estimated uncollectible $= 40 \%$ . Record the year-end adjustment for uncollectible accounts, assuming the current balance of the Allowance for Uncollectible Accounts is $1,200 (debit).

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Definitions:

Noncompete Clause

A contract provision prohibiting an employee from working in a competing business for a specified period after leaving the company.

Right to Be Informed

A consumer right that ensures individuals have access to complete and accurate information before making purchasing decisions.

Web Retailer

A business that sells products or services exclusively over the Internet, without a physical storefront.

Personal Information

Data relating to an individual that can be used to identify, contact, or locate a person, including but not limited to name, address, and phone number.