Cedar Mill, Inc. uses the Aging of Accounts Receivable method
for estimating uncollectible accounts. The accounting records show
the following information at the end of the year:
Number of Days Unpaid
0 - 30
31 - 60
61 - 90
Over 90
Accounts Receivable
$
740,000
$
480,000
$
220,000
$
160,000
Estimated % Uncollectible
5
%
10
%
15
%
25
%
If the unadjusted credit balance in the Allowance for Doubtful
Accounts account before is $30,000, what would be the amount of the
adjustment for bad debts?
Multiple Choice
$158,000
$90,000
$69,000
$128,000