Coronado Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Coronado's Accounts Receivable account was $591,900 and Allowance for Doubtful Accounts had a credit balance of $44,990. 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 Less than 16 days Between 16 and 30 days Between 31 and 45 days Between 46 and 60 days Between 61 and 75 days Over 75 days (to be written off) (a) Amount $314,500 112,400 85,000 44,200 19,900 15,900 Probability of Collection 0.98 Balance for allowance for doubtful accounts $ 0.90 0.86 0.79 0.55 0.00 What is the appropriate balance for Allowance for Doubtful Accounts at year-end?

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by t…

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable ari…