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Following are the monthly sales, collections and bad debt write-offs for Midwest Distributing, Inc. for its year ending June, 30 2017. Assume all sales are
Following are the monthly sales, collections and bad debt write-offs for Midwest Distributing, Inc. for its year ending June, 30 2017. Assume all sales are credit sales. Cash Month July August September October November December January February March April May June Collections Credit Sales $95,000 $105,000 98,000 101,000 20,000 157,000 180,000 75,000 83,000 85,000 97,000 95,000 85,000 $1,272,600 $1,281,000 Write-Offs S 3.500 101,100 100,500 98,000 110,000 156,500 130,000 105,000 91,000 90,000 87,500 108,000 3,000 2,500 4,500 5,000 1,000 Total S 19,500 Midwest's controller prepared the following aging of accounts receivable as of June 30, 2017: Account Classification Current 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Percent Uncollectable 1% 5% 10% 20% 25% Balance S50,000 47,000 18,000 9,000 5,000 The allowance for doubtful accounts balance on June 30, 2016 was $8,950
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