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On December 31,2014,Zale Company Had an Unadjusted Debit Balance of $1,000

Question 24

Essay

On December 31,2014,Zale Company had an unadjusted debit balance of $1,000 in its allowance for uncollectible accounts.An analysis of Zale's trade accounts receivable at that date revealed the following:
% Estimated  Age  Amount  Uncollectible 0−30 days $125,0002%31−60 days 34,0005%61−90 days 8,50020% Over 90 days 4,70050%\begin{array}{crc}&& \% \text { Estimated }\\\text { Age } & \text { Amount } & \text { Uncollectible } \\0-30 \text { days } & \$ 125,000 & 2 \% \\31-60 \text { days } & 34,000 & 5 \% \\61-90 \text { days } & 8,500 & 20 \% \\\text { Over } 90 \text { days } & 4,700 & 50 \%\end{array}
Required:
What amount should Zale report as allowance for uncollectible accounts in its December 31,2014 balance sheet? Prepare any necessary adjusting entry at December 31,2014 related to this analysis.

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