Question
Valdez Company uses the percent of receivables method to estimate uncollectible accounts expense. Valdez began 2011 with balances in Accounts Receivable and Allowance for Doubtful
Valdez Company uses the percent of receivables method to estimate uncollectible accounts expense. Valdez began 2011 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $46,750 and $3,070 (credit), respectively. During the year, the company wrote off $4,020 in uncollectible accounts. In preparation for the company's 2011 estimate, Valdez prepared the following aging schedule (Do not round your intermediate calculations. Round your final answer to two decimal places):
What will Valdez record as Uncollectible Accounts Expense for 2011?
$4,020.00
$10,668.10
$12,391.10
$11,618.10
Number of Days Past Due Current 0-30 31-60 61-90 Over 90 Total Receivables Amount $27,700 $14,650 $2,650 $1,280 $1,800 $48,080 % Likely to be Uncollectible 18% 22% 27% 42% 67%
Step by Step Solution
3.47 Rating (147 Votes )
There are 3 Steps involved in it
Step: 1
No of Days Past Due Receivables of Uncollectible ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started