Star Electronics has aging accounts receivable as follows: Current ($50,000), 1-30 days ($30,000), 31-60 days ($20,000), and over 60 days ($10,000). Using estimated uncollectible rates of 1%, 5%, 10%, and 20% respectively, Provide the required balance in the allowance for doubtful accounts.

Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter9: Receivables
Section: Chapter Questions
Problem 9E: Kirchhoff Industries has a past history of uncollectible accounts, as follows. Estimate the...
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Provide the required balance

Star Electronics has aging accounts receivable
as follows: Current ($50,000), 1-30 days
($30,000), 31-60 days ($20,000), and over 60
days ($10,000). Using estimated uncollectible
rates of 1%, 5%, 10%, and 20% respectively,
Provide the required balance in the allowance
for doubtful accounts.
Transcribed Image Text:Star Electronics has aging accounts receivable as follows: Current ($50,000), 1-30 days ($30,000), 31-60 days ($20,000), and over 60 days ($10,000). Using estimated uncollectible rates of 1%, 5%, 10%, and 20% respectively, Provide the required balance in the allowance for doubtful accounts.
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