The following information pertains to Tara Co.’s accounts receivable at December 31, 2006:
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|
Days outstanding |
Amount |
Estimated % uncollectible |
|
0 – 60 |
$120,000 |
1% |
|
61 – 120 |
90,000 |
2% |
|
Over 120 |
100,000 |
6% |
|
$310,000 |
During 2006, Tara wrote off $7,000 in receivables and recovered $4,000 that had been written off in prior years. Tara’s December 31, 2005 allowance for uncollectible accounts was $22,000. Under the aging method, what amount of allowance for uncollectible accounts should Tara report at December 31, 2006?
- $ 9,000
- $10,000
- $13,000
- $19,000