Question
enge Company has accounts receivable of $108,000 at March 31. Month of Sale Balance, March 31 Average Age of Receivables Outstanding March$70,40016daysFebruary19,40048daysJanuary9,30073daysPrior to January8,900110days108,000 Credit
enge Company has accounts receivable of $108,000 at March 31.
Month of Sale
Balance,
March 31
Average Age
of Receivables
Outstanding
March$70,40016daysFebruary19,40048daysJanuary9,30073daysPrior to January8,900110days108,000
Credit terms are 2/10, n/30. At March 31, Allowance for Doubtful Accounts has a credit balance of $1,500 prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimate of bad debts is shown below.
Age of Accounts
Estimated Percentage
Uncollectible
130 days2.0%3160 days5.0%6190 days25.0%Over 90 days51.0%
(a)
Determine the total estimated uncollectibles.
Total estimated uncollectibles$
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Taxation Of Individuals And Business Entities 2015
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
6th Edition
978-1259206955, 1259206955, 77862368, 978-0077862367
