Question
During October, Pirates LLP has credit sales of $200,000. The October 31 Aging Schedule for Pirates LLP is as follows: Current $100,000 (1% is estimated
During October, Pirates LLP has credit sales of $200,000. The October 31 Aging Schedule for Pirates LLP is as follows:
Current $100,000 (1% is estimated to be uncollectible)
1-30 Days Past Due $50,000 (5% is estimated to be uncollectible)
31-60 Days Past Due $20,000 (10% is estimated to be uncollectible)
61-90 Days Past Due $10,000 (20% is estimated to be uncollectible)
Greater than 90 Days Past Due $20,000 (50% is estimated to be uncollectible)
Balance in Allowance for Doubtful Accounts on October 1: $5,000 credit
If the company uses the % of A/R method of to calculate uncollectible accounts and had no write offs totaling $10,000, what is the cash flow impact from the these events for October??
Group of answer choices
$17,500 decrease
None of the Answers is Correct
$10,000 decrease
$27,500 decrease
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