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Alpha Company began its first year of operation in January 1, 2017

Alpha Company began its first year of operation in January 1, 2017.

The general manager wants to consider which method to use when accounting for uncollectible accounts. You have been tasked to prepare n analysis based on the following information:
Total Credit Sales: $800,000
Total Cash Sales: $150,000
Credit Sales Discounts: $15,000
Credit Sales Returns: $65,000
Cash Sales Returns: $5,000

The general manager stated an expectation that of credit sales, 1.3% may result in being uncollectible. The following information relates to the FY 2017 unadjusted trail balance of amounts of accounts receivable, along with the estimate percentages based on aging method and balance that consist of:
0-60 $120,000 1%
61-120 $90,000 2%
Over 120 $100,000 7%

If the percentage of accounts receivable were used, the general manager expects that a total of 3% would be uncollectible.

One of Alpha’s clients declared bankruptcy in September and the bookkeeper wrote off that account with a debit to the allowance for uncollectible accounts and a credit to the account receivables for the amount of $500.

Based on the information provided, calculate the following values to be presented to the general manager for FY 2017 (enter whole numbers only).

Allowance for uncollectible accounts, aging method:
Bad debt expense, aging method:
Allowance for uncollectible accounts, percent of net credit sales method:
Bad debt expense, percent of net credit sales method:

 
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