Question - 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
One January 2, 2016, Alpha Company purchased 10,500 shares of Bravo Company stock, as trading securities, for $10 per share. On July 3, 2016 the securities were trading on the open market for $12.50 per share. On December 31, 2016, the closing market price for these securities was $9.00 per share. What value should the trading securities be reported for Alpha Company's FY 2016 balance sheet?