Jim Co. uses aging of Accounts Receivable to estimate uncollectible.

Jim Co. uses aging of Accounts Receivable to estimate uncollectible. The unadjusted trial balance amount of accounts receivable on Dec. 31, 2016, has a balance that is days outstanding amount estimated uncollectible

0-60 120,000 1%

61-120 90,000 2%

over 120 100,000 6%

total: 310,000

Activity during FY 2016 consists of:

7/15: Jim Co wrote off Bob Co. account as not collectable for the amount of $7,000

10/20: Jim Co. recovered $4000 from Calvin Co. for settlement of their prior debt that had been written off FY 2015.

Jim Co. Dec. 31, 2015 allowance for uncollectible accounts was $2,200. Using the aging method what amounts should Jim Co. report for Dec. 31, 2016

Allowance for uncollectible accounts
Bad Debt Expense

Here’s the SOLUTION

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