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Question
The totals from the Savoy Company's Schedule of Accounts Receivable by Age as of the end of the current year are shown below.
Accounts Balance Current 1-30 31-60 Over 60Totals $11,800 $9,200 $1,500 $600 $500
Also, compute the amount of the adjusting entry for uncollectible accounts expense.Current 1%
1-30 days past due 5%
31-60 days past due 15%
Over 60 days past due 40%
In addition, what are the advantages and disadvantages of basing uncollectibility of accounts on accounts receivables? Is the percentage given acceptable or not?
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