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Note 22 reports information about the number of days Pearson's trade receivables have been outstanding relative to their due date. Assume that Pearson's auditor analyzed
Note 22 reports information about the number of days Pearson's trade receivables have been outstanding relative to their due date. Assume that Pearson's auditor analyzed historical collection information to estimate the percentage of uncollectible accounts by age category and reported the estimates in the table below. Use these percentages and the trade receivable aging information provided in Note 22 to estimate uncollectible accounts at December 31, 2009, and complete the table. Based on your estimate, would the auditor be comfortable that the balance of the provision for bad and doubtful debt account reported in Note 22 was adequate? Note 22 reports information about the number of days Pearson's trade receivables have been outstanding relative to their due date. Assume that Pearson's auditor analyzed historical collection information to estimate the percentage of uncollectible accounts by age category and reported the estimates in the table below. Use these percentages and the trade receivable aging information provided in Note 22 to estimate uncollectible accounts at December 31, 2009, and complete the table. Based on your estimate, would the auditor be comfortable that the balance of the provision for bad and doubtful debt account reported in Note 22 was adequate
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