Question
During a recent year Kellys Boutique had sales on account of $6,025,000, collections of $5,800,000, write-offs of $50,000, a beginning balance in accounts receivable of
During a recent year Kellys Boutique had sales on account of $6,025,000, collections of $5,800,000, write-offs of $50,000, a beginning balance in accounts receivable of $500,000, and a beginning balance in the allowance for uncollectible accounts of $37,000. At year end, $600,000 of accounts receivable were current, $39,000 were 030 days past due, $18,000 were 3160 days past due, $10,000 were 6190 days past due, and $8,000 were over 90 days past due. The company believes .8 percent of sales will not be collected. They also have experience that suggests that 4 percent of all current receivables, 8 percent of receivables 030 days past due, 20 per- cent of receivables 3160 days past due, 25 percent of receivables 6190 days past due, and 75 percent of receivables over 90 days past due will not be collected. Using the file ch7-06, complete the allowance for uncol- lectible accounts analysis for both standard methods. Save the file as ch7- 06_student_name (replacing student_name with your name). Print this completed worksheet
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