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Tyson Corp What Is the Amount of Receivables Deemed Uncollectible?
A)$1,650
B)$4,650

Question 32

Multiple Choice

Tyson Corp. uses the aging method to estimate bad debts. The bookkeeper provided the following schedule as of March 30th, 2017:
 Account Age  Balance  Noncollection Probability  Current $50,0003%130 days past due 40,0004%3160 days past due 10,0008% Over 60 days past due 5,00015%\begin{array}{|l|r|c|}\hline{\text { Account Age }} & \text { Balance } & \text { Noncollection Probability } \\ \hline \text { Current } & \$ 50,000 & 3 \% \\\hline 1--30 \text { days past due } & 40,000 & 4 \% \\\hline 31--60 \text { days past due } & 10,000 & 8 \% \\\hline \text { Over 60 days past due } & 5,000 & 15 \% \\\hline\end{array}
What is the amount of receivables deemed uncollectible?


A) $1,650
B) $4,650
C) $3,400
D) $105,000

Correct Answer:

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