Reference no: EM132241023
Question - Baltimore 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
$175,000 < 30 days old 98%
80,000 30 to 60 days old 90%
20,000 61 to 120 days old 72%
10,000 > 120 days old 18%
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.
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