Option #1: Bad DebtsPaisley Corporation operates in an industry that has a high rateof...Option...

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Accounting

Option #1: Bad Debts
Paisley Corporation operates in an industry that has a high rateof bad debts. The year-end balance reported in the balance sheetfor the Allowance for Doubtful Accounts will be based on the agingschedule shown below:
Days Account Outstanding
Amount
Probability of Not Collecting
Less than 16 days
$351,600
.03
Between 16 and 30 days
122,400
.11
Between 31 and 45 days
84,000
.17
Between 46 and 60 days
66,000
.24
Between 61 and 75 days
33,600
.40
Over 75 days
$ 9,600
.70
Before year-end adjustments, Chatter’s Allowance for DoubtfulAccounts had a debit balance of $6,000.
What is the appropriate balance for the Allowance for DoubtfulAccounts at year-end?
Show how accounts receivable would be presented on the balancesheet.
What is the dollar effect of the year-end bad debt adjustment onthe before-tax income?
Your well-written paper must be 2 to 3 pages in length. Cite atleast three peer-reviewed sources, in addition to the requiredreadings for this module. Please provide a detailed answer. Thanksin advance.

Days Account Outstanding	Amount	Probability of Not Collecting
Less than 16 days	$351,600	.03
Between 16 and 30 days	122,400	.11
Between 31 and 45 days	84,000	.17
Between 46 and 60 days	66,000	.24
Between 61 and 75 days	33,600	.40
Over 75 days	$ 9,600	.70

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calculation of allowance of doubtful debt at year end days ac outstanding amount a probability of not collecting b allowance ab less See Answer

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In: AccountingOption #1: Bad DebtsPaisley Corporation operates in an industry that has a high rateof...Option #1: Bad DebtsPaisley Corporation operates in an industry that has a high rateof bad debts. The year-end balance reported in the balance sheetfor the Allowance for Doubtful Accounts will be based on the agingschedule shown below:Days Account OutstandingAmountProbability of Not CollectingLess than 16 days$351,600.03Between 16 and 30 days122,400.11Between 31 and 45 days84,000.17Between 46 and 60 days66,000.24Between 61 and 75 days33,600.40Over 75 days$ 9,600.70Before year-end adjustments, Chatter’s Allowance for DoubtfulAccounts had a debit balance of $6,000.What is the appropriate balance for the Allowance for DoubtfulAccounts at year-end?Show how accounts receivable would be presented on the balancesheet.What is the dollar effect of the year-end bad debt adjustment onthe before-tax income?Your well-written paper must be 2 to 3 pages in length. Cite atleast three peer-reviewed sources, in addition to the requiredreadings for this module. Please provide a detailed answer. Thanksin advance.