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Question - lpha Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2016, Accounts Receivable has a balance that consists of:
Dollar Value Age of Account Estimated Collectible
$115,000 < 30 days old 98%
65,000 30 to 60 days old 85%
20,000 61 to 120 days old 75%
5,000 > 120 days old 10%
The current unadjusted Allowance for Uncollectable Accounts balance is a credit balance of $2,500 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:
1. Accounts Receivable
2. Allowance for Doubtful Accounts
3. Bad Debt Expense
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