What adjustment should chief make to the allowance


As of December 31, Chief Company has a balance of $10,000 in accounts receivable of which $1,000 is overdue. Chief has a credit balance of $100 in the allowance for doubtful accounts. Chief estimates its bad debts losses at 1% of accounts not yet due and 10% of accounts overdue. What adjustment should Chief make to the allowance for doubtful accounts?

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Accounting Basics: What adjustment should chief make to the allowance
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