Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Evers Industries has a past history of uncollectible accounts, as follows. Age Class Percent Uncollectible Not past due 1 % 1-30 days past due 3

Evers Industries has a past history of uncollectible accounts, as follows.

Age Class Percent Uncollectible
Not past due 1 %
1-30 days past due 3
31-60 days past due 12
61-90 days past due 30
Over 90 days past due 75

Estimate the allowance for doubtful accounts, based on the aging of receivables information provided in the chart below.

blank Evers Industries Estimate of Allowance for Doubtful Accounts
Balance Not Past Due Days Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due Over 90
Total receivables 1,124,500 607,400 233,000 121,600 96,500 66,000
Percentage uncollectible 1% 3% 12% 30% 75%
Allowance for doubtful accounts fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4 fill in the blank 5 fill in the blank 6

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Practical Finance For Property Investment

Authors: Craig Furfine

1st Edition

036733304X, 978-0367333041

More Books

Students also viewed these Finance questions

Question

What is the oversight role of an audit committee?

Answered: 1 week ago