Question
Novak Company has accounts receivable of $111,600 at March 31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, there is a $1,400 credit
Novak Company has accounts receivable of $111,600 at March 31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, there is a $1,400 credit balance in Allowance for Doubtful Accounts 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 Balance, March 31 Estimated Percentage Uncollectible 2020 2019 Current 1-30 days past due 31-90 days past due $71,400 $75,000 23,900 2% 8,000 6% 8,800 2,400 21% Over 90 days past due 7,500 1,100 55% $111.600 $86,500 (1) Determine the total estimated uncollectibles Total estimated uncollectibles $
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