Young and Old Corporation (YOC) uses two aging categories to
estimate uncollectible accounts. Accounts less than 60 days are
considered young and have a 4% uncollectible rate. Accounts more
than 60 days are considered old and have a 40% uncollectible rate.
Required: 1. If YOC has $113,000 of young accounts and $370,000 of
old accounts, how much should be reported in the Allowance for
Doubtful Accounts? 2. If YOC’s Allowance for Doubtful Accounts
currently has an unadjusted credit balance of $37,000, how much
should be credited to the account? 3. If YOC’s Allowance for
Doubtful Accounts has an unadjusted debit balance of $4,700, how
much should be credited to the account?