Reference no: EM132380349

Question

Bingo Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of:

Dollar Value      Age of Account         Estimated Collectible

$130,000        < 30 days old                    99%

70,000             30 to 60 days old             92%

40,000             61 to 120 days old             79%

12,000             > 120 days old                  16%

The current unadjusted Allowance for Uncollectible Accounts balance is a debit balance of $2,000 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the Allowance for Doubtful Accounts? Round to nearest whole dollar

Annalewis Company's bank statement indicated an ending cash balance of $8,440. Annalewis's accountant discovered that outstanding checks amounted to $965 and deposits in transit were $720. Additionally, the bank statement showed service charges of $40. What is the correct adjusted ending cash balance.