Problem 7-3 (Part Level Submission) Swifty Corporation operates in an industry that has a high...
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Accounting
Problem 7-3 (Part Level Submission) Swifty Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Swifty's Accounts Receivable account was $593,800 and Allowance for Doubtful Accounts had a credit balance of $44,400. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Probability of Days Account Outstanding Less than 16 days Between 16 and 30 days Between 31 and 45 days Between 46 and 60 days Between 61 and 75 days Over 75 days Amount $314,200 118,700 83,400 43,700 19,700 14,100 Collection 0.97 0.90 0.85 0.82 0.50 0.00 Assume that accounts with a zero percent chance of collection are intended to be written off Your answer is incorrect. Try again What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for Allowance for Doubtful Accounts 65622
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