Aging of Accounts Receivable Method - Desired Allowance Balance Number of Days Unpaid Customer Total 6.30 Adam's Sports $ 700 $400 31-60 61-90 $300 $100 Over 90 Momentum Clothes 2300 $2.300 Othen Inot shown to save space 185.000 97600 45300 37,900 3.700 Zoom Mhletics 6000 4,000 2,000 Total Accounts Receivable 11000 5102006 $52.000 13.000 $6,000 120 10% 20% x40% Estimated Uncollectible() 17,349 $2,040 $5,300 $7,600 $1,400 Aging of Accounts Receivable Method (1) Prepare an aged Insting of accounts receivable (2) Estimate bad debt loss percentages for each aging category 3) Compute the total estimate by multiplying the totals in step (1) by the step (2) and then summing across all categories perce ences Knowledge Check 011 At its December 31 year-end, Accounts Receivable totaled $86,600, aged as follows: (1) 1-30 days old, $71,000; (2) 31-90 days old, $12,000; and (3) more than 90 days old, $3,600. Experience has shown that for each age group, the estimated uncollectible is (1) 12% (2) 24 %, and (3) 48%, respectively. What is the balance to which the Allowance for Doubtful Accounts will need to be adjusted at the end of the period? Allowance for Doubtful Accounts