A collection are intended to be written off

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Reference no: EM131859016

Manilow Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Manilow's Accounts Receivable account was $591,200 and the Allowance for Doubtful Accounts had a credit balance of $40,200.

The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below.

Days Account Outstanding	Amount	Probability of Collection
Less than 16 days	$313,800	0.97
Between 16 and 30 days	113,200	0.91
Between 31 and 45 days	81,300	0.87
Between 46 and 60 days	42,400	0.82
Between 61 and 75 days	24,900	0.55
Over 75 days	15,600	00

Assume that accounts with a zero percent chance of collection are intended to be written off.

Reference no: EM131859016

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