Young and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts. Accounts less...
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Accounting
Young and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts. Accounts less than sixty days are considered young and have a 5 percent uncollectible rate. Accounts more than sixty days are considered old and have a 30 percent uncollectible rate. Required: 1. If YOC has $163,000 of young accounts and $445,000 of old accounts, how much should be reported in the Allowance for Doubtful Accounts? 2. If YOC's Allowance for Doubtful Accounts currently has an unadjusted credit balance of $32,000, how much should be credited to the account? 3. If YOC's Allowance for Doubtful Accounts has an unadjusted debit balance of $11,750, how much should be credited to the account
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