Cindrella uses aging to estimate uncollectibles. Accounts of $150,000 are less than 30 days old...
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Accounting
Cindrella uses aging to estimate uncollectibles. Accounts of $150,000 are less than 30 days old (96% collectible), $80,000 are 30 to 60 days old (85% collectible), $35,000 are 61-120 days old (50% collectible), and the remaining $10,000 is 10% collectible.
Question 12 options:
A)
The Allowance for Uncollectibles should have a balance of $6,000.
B)
The Allowance for Uncollectibles should have a balance of $17,500.
C)
The Allowance for Uncollectibles should have a balance of $44,500.
D)
The Allowance for Uncollectibles should have a balance of $29,500.
E)
None of these.
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