Exam 3 Student.xlsx

FHB, Inc. uses the aging of accounts receivable method for estimating bad debts. Based on the December 31st accounts receivable records, the amounts for each aging category are as follows:

Little Co. Equine Resort

Animal Care Center TX stables Other Customers

Current 5,000

1-30 days Current 1-30 days 31-60 days Current 31-60 days 61-90 days Over 90 current 1-30 days 31-60 days 61-90 days Over 90

8,000 25,000 9,000 14,000 1,000 5,500 6,400 8,900 50,000 35,000 27,500 1,200 13,000

Based on past history, the estimated percentages of uncollectible accounts receivable for each category is as

Current 1% 1-30 Days 3% 31-60 Days 10% 61-90 Days 20% Over 90 50%

Required: Prepare, in good form, an aging schedule for December 31st and a schedule of estimated uncollectable accounts receivable.