The following information is available regarding the outstanding accounts receivable of Mufu Contracting at September 30, 2020:

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The following information is available regarding the outstanding accounts receivable of Mufu Contracting at September 30, 2020:

Month of Credit Sale* May $35,000 Aug. $ -0- 36,000 Sept. $ -0- Customer June July $ 0- B. Axley -0- T. Holton 16,500 -0


Mufu estimates bad debts using the following rates:

1 to 29 days 30 to 59 days 60 to 89 days past due 10% 90 to 119 Over 119 Not yet due past due past due days past due day


Required

a. Complete a Schedule of Accounts Receivable by Age at September 30, 2020 (similar to Exhibit 8.13).

b. The Allowance for Doubtful Accounts showed an unadjusted balance on September 30, 2020, of $1,900. Record the adjusting entry at September 30, 2020, to estimate uncollectible accounts.


Exhibit 8.13

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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