(Learning Objective 5: Apply GAAP to uncollectible receivables) At December 31, 2018, before any year-end adjustments, the Accounts Receivable balance of Hampton Company, Inc., is $330,000. The Allowance for Uncollectible

(Learning Objective 5: Apply GAAP to uncollectible receivables) At December 31, 2018, before any year-end adjustments, the Accounts Receivable balance of Hampton Company, Inc., is $330,000. The Allowance for Uncollectible Accounts has a $15,400 credit balance. Hampton prepares the following aging schedule for Accounts Receivable: Age of Accounts Total Balance 1–30 Days 31–60 Days 61–90 Days Over 90 Days $330,000 $100,000 $70,000 $30,000 Estimated uncollectible 0.6% 3.0% 5.0% $130,000 40.0% Requirements 1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowance account adequate? Too high? Too low? 2. Make the entry required by the aging schedule. Prepare a T-account for the allowance. 3. Show how Hampton will report Accounts Receivable on its December 31 balance sheet.

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