Question
During a recent year, Snick's Board Shop had sales on account of $45,000, collections of $45,500, write-offs of $800, a beginning balance in accounts receivable
During a recent year, Snick's Board Shop had sales on account of $45,000, collections of $45,500, write-offs of $800, a beginning balance in accounts receivable of $5,000, and a beginning balance in the allowance for uncontrollable accounts of $300. At year end $2,400 of accounts receivable were current, $700 were 0-30 days past due, $300 were 31-60 days past due, $200 were 61-90 days past due, and $100 were over 90 days past due. The company believes 1.5% of sales will not be collected. They also have experience suggesting that 2% of all current receivables, 11% of receivables 0-30 days past due, 16% of receivables 31-60 days past due, 25% of receivables 61-90 days past due, and 50% of receivables over 90 days past due will not be collected. Using the file ch7-12, complete the allowance for uncollectable accounts analysis for both standard methods.
from chapter 7-page 185 in Using Microsoft Excel & Access for Accounting 2016 by Glenn Owen
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