Thant Company uses the accounts receivable aging method to estimate uncollectible accounts. At the beginning of the year, the balance of the Accounts Receivable account was a debit of $88,430, and the balance of Allowance for Uncollectible Accounts was a credit of $7,200. During the year, the store had sales on account of $473,000, sales returns and allowances of $4,200, worthless accounts written off of $7,900, and collections from customers of $450,730. At the end of year (December 31), a junior accountant for Thant Company was preparing an aging analysis of accounts receivable. At the top of page 6 of the report, the following totals appeared:

To finish the analysis, the following accounts need to be classified:

From past experience, the company has found that the following rates are realistic for estimating uncollectible accounts:

Required 1. Complete the aging analysis of accounts receivable.
2. Compute the end-of-year balances (before adjustments) of Accounts Receivable and Allowance for Uncollectible Accounts.
3. Prepare an analysis computing the estimated uncollectible accounts.

4. Calculate Thant Company’s estimated uncollectible accounts expense for the year (round the amount to the nearest whole dollar).
5. User Insight: What role do estimates play in applying the aging analysis?
What factors might affect these estimates?
Notes Receivable Calculations

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Customer Account Total Not Yet Due 1-30 31-60 61-90 Over Days Days Days 90 Days Past Due Past Due Past Due Past Due Balance Forward $89,640 $49,030 $24,110 $9,210 $3,990 To finish the analysis, the following accounts need to be classified: Account Due Date $3,300 Amount B. Singh L. Wells $ 930 Jan. 14 (next year) 620 Dec. 24 A. Roc 1,955 Sept. 28 T. Cila 2,100 Aug. 16 M. Mix 375 Dec. 14 S. Price 2,685 Jan. 23 (next year) J. Wendt 295 Nov. 5 $8,960