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The Valley Heat Company gathered the following information pertaining to its year ended December 31,...

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Accounting

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The Valley Heat Company gathered the following information pertaining to its year ended December 31, 2020, prior to any adjustments: Net credit sales for the year $780,000 Accounts receivable, Dec 31, 2020 170,000 Allowance for doubtful accounts. December 31, 2020 3,200 Cr. Aging of accounts receivable at December 31, 2020: 1-30 days $95.000 31-60 days 38.000 61-90 days 23,000 Over 90 days 14.000 Total $170,000 Assume Valley Heat uses the aging-of-accounts receivable method for estimating uncollectible accounts Valley Heat estimates that uncollectible accounts will be aged as follows: 2% for 1-30 days: 4% for 31-60 days, 10% for 61-90 days, and 25% for over 90 days The adjusting entry for uncollectible accounts would include a credit to allowance for doubtful for Assume Valley Heat uses the aging-of-accounts-receivable method for estimating uncollectible accounts. Valley Heat estimates that uncollectible accounts will be aged as follows: 2% for 1-30 days; 4% for 31-60 days, 10% for 61-90 days, and 25% for over 90 days The adjusting entry for uncollectible accounts would include a credit to allowance for doubtful for $9,220 $5,880 O $12,280. $6,020

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