Question
Net Zero Products, a wholesaler of sustainable raw materials, the following aging of receivables analysis. Total Days Past Due 0 1 to 30 31 to
Net Zero Products, a wholesaler of sustainable raw materials, the following aging of receivables analysis.
| Total | Days Past Due | |||||
|---|---|---|---|---|---|---|
| 0 | 1 to 30 | 31 to 60 | 61 to 90 | Over 90 | ||
| Accounts receivable | $ 150,000 | $ 90,000 | $ 28,000 | $ 12,000 | $ 9,000 | $ 11,000 |
| Percent uncollectible | 1% | 3% | 5% | 8% | 11% |
1. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. 2. the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $2,000 credit.
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Cost Accounting Foundations and Evolutions
Authors: Michael R. Kinney, Cecily A. Raiborn
8th Edition
9781439044612, 1439044619, 978-1111626822
