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18 January, 18:52

Ace Co. prepared an aging of its accounts receivable at December 31, 2014 and determined that the net realizable value of the receivables was $600,000. Additional information is available as follows: Allowance for uncollectible accounts at 1/1/14-credit balance $ 68,000 Accounts written off as uncollectible during 2014 46,000 Accounts receivable at 12/31/14 650,000 Uncollectible accounts recovered during 2014 10,000 For the year ended December 31, 2014, Ace's uncollectible accounts expense would be

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  1. 18 January, 18:55
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    uncollectible accounts expense 28,000

    Explanation:

    the aging of the accounts receivable is 600,000

    AR unadjusted 650,000

    We need to adjust by 50,000 to get the net realizable value

    allowance: 68,000

    written off (46,000)

    uncollectible expense X

    year end 50,000

    68,000-46,000 + uncollectible = 50,000

    uncollectible = 50,000 - 22,000 = 28,000
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