Question
Menge Company has accounts receivable of $115,800 at March 31. Month of Sale Balance, Average Age March 31 of Receivables Outstanding March $75,700 16 days
Menge Company has accounts receivable of $115,800 at March 31.
Month of Sale Balance, Average Age
March 31 of Receivables
Outstanding
March $75,700 16 days
February $22,200 48 days
January $9,100 73 days
Prior to January $8,800 110 days
$115,800
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 days 4.0%
3160 days 5.0%
6190 days 20.0%
Over 90 days 55.0%
Determine the total estimated uncollectibles.
Total estimated uncollectibles: $ ???????
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