Aging of Accounts Consider the following analysis of Accounts Receivable, February 28, 20X9: Name of Customer Ng
Question:
Aging of Accounts Consider the following analysis of Accounts Receivable, February 28, 20X9:
Name of Customer Ng Nurseries Total Remarks $ 20,000 25% over 90 days, 75% 61-90 days Michael's Landscaping 8,000 75% 31-60 days, Shoven Garden Supply 12,000 25% under 30 days 60% 61-90 days, 40 % 31-60 days Bonner Perennial Farm 20,000 All under 30 days Hjortshoj Florists 4,000 25% 61-90 days, 75% 1-30 days Other accounts 80,000 50% 1-30 days, (each detailed) 30% 31-60 days, 15% 61-90 days, 5% over 90 days Total $144,000 Prepare an aging schedule, classifying ages into four categories: 1 to 30 days, 31 to 60 days, 61 to 90 days, and over 90 days. Assume that the prospective bad debt percentages for each category are 0.2%, 0.8%, 10%, and 80%, respectively. What is the ending balance in the Allowance for Uncollectible Accounts?
Step by Step Answer:
Introduction To Financial Accounting
ISBN: 0131479725
9th Edition
Authors: Charles T Horngren, John A Elliott