Question

The following selected information is from Imagine Corporation’s partial aging schedule in fiscal year 2015. To determine the adjusted allowance for doubtful accounts, the company uses each percentage of uncollectible Accounts Receivables based on different classifications of the number of outstanding days.

Number of Days Outstanding	Accounts Receivable	Estimated Percentage Uncollectible
0-30 days	$110,000	1%
31-60 days	50,000	5%
61-90 days	20,000	20%
Over 90 days	12,500	50%
Total	$192,500

The unadjusted balance in Allowance for Doubtful Accounts is a credit balance of $5,000 at the end of the year of 2015. In the following year of 2016, $3,000 of the outstanding receivables is determined to be uncollectible. Subsequent to the write-off of accounts receivables in 2016, what is the net carrying amount of Accounts Receivable?

Answer 1