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QUESTION

Alpha Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2016, Accounts Receivable has a balance that...

Alpha Company uses aging to estimate uncollectibles.  At the end of the fiscal year, December 31, 2016, Accounts Receivable has a balance that consists of: 

Dollar Value

Age of Account

Estimated Collectible

$125,000 

< 30 days old

98%

85,000 

30 to 60 days old

85%

50,000 

61 to 120 days old

50%

10,000 

> 120 days old

10%

The current unadjusted Allowance for Uncollectable Accounts balance is a credit balance of $1,575 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the:

1. Accounts Receivable

2. Allowance for Doubtful Accounts

3. Bad Debt Expense

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