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Credit Losses Based on Accounts Receivable Aging Maxwell Inc. analyzed its accounts receivable balances at...

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Accounting

Credit Losses Based on Accounts Receivable Aging Maxwell Inc. analyzed its accounts receivable balances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible: % Considered Age Group Balance Uncollectible 0-30 days past due $130,000 1% 31-60 days past due 23,400 3% 61-120 days past due 26,000 6% 121-180 days past due 9,100 10% Over 180 days past due 2,600 20% $191,100 The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $1,092 on December 31, before any adjustments. a. Determine the amount of the adjustment for estimated credit losses on December 31. $

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