Question

Mellon CorporationThe data presented below is for Mellon Corporation for the year ended December 31, 2016:

Sales (100% on credit) $1,500,000
Sales returns $60,000
Accounts Receivable (December 31, 2016) $250,000
Allowance for Doubtful Accounts [Credit Balance] (Before adjustment at December 31, 2016 $3,000
Estimated amount of uncollectible accounts based on an aging analysis $31,000
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​Refer to the data for Mellon Corporation.
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If Mellon uses the aging of accounts receivable approach to estimate its bad debts, what amount will be reported as bad debt expense for 2016?

a. $34,000
b. $28,000
c. $31,000
d. $50,000

Answer 1

The data appears to be financial figures for Mellon Corporation but lacks context. Typically, such numbers could indicate revenue, expenses, or other financial statement items and are key for analyzing the company's financial health.

Step-by-step explanation:

The provided data appears to be related to financial figures for Mellon Corporation for the year ended December 31, 2016. However, without a specific question or context for these numbers, it's unclear what is being asked. Typically, such data could be used in different financial statements and analyses, like balance sheets, income statements, and cash flow statements. These statements are crucial in assessing the company's performance, financial health, and in making informed decisions.

For instance, the amounts given could represent revenue, expenses, assets, liabilities, or equity figures. Careful examination and categorization of these numbers according to accounting principles is necessary to analyze Mellon Corporation's financial status.