During Year 4, Tara wrote off $7,000 in receivables and recovered $4,000 that had been written off in prior years. Tara's December 31, Year 3, allowance for uncollectible accounts was $22,000. Under the aging method, what amount of allowance for uncollectible accounts should Tara report on December 31, Year 4?

a. $9,000.

b. $13,000.

c. $19,000.

d. $10,000.

Question

Finley Vance

Business

30 April, 05:44

During Year 4, Tara wrote off $7,000 in receivables and recovered $4,000 that had been written off in prior years. Tara's December 31, Year 3, allowance for uncollectible accounts was $22,000. Under the aging method, what amount of allowance for uncollectible accounts should Tara report on December 31, Year 4?

a. $9,000.

b. $13,000.

c. $19,000.

d. $10,000.

+4

Answers (1)

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Lexie Raymond · Answer 1

During Year 4, Tara wrote off $7,000 in receivables and recovered $4,000 that had been written off in prior years. Tara's December 31, Year 3, allowance for uncollectible accounts was $22,000. Under the aging method, what amount of allowance for uncollectible accounts should Tara report on December 31, Year 4?

$19,000.

Explanation:

Wrote off $7,000

recover $4,000

uncollected money stands at = 7,000-4,000 = $3,000 in year 4

total uncollected money in year 3 is $22,000

then will be 22,000-3,000 = $19,000