Percent Uncollectible by Age

Makeup of Total Sales

Estimate the balance of the Allowance for Doubtful Accounts using percent of sales method. Assume a $$0$ existing balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for credit sales.

Estimate the balance of the Allowance for Doubtful Accounts using percent of receivables method. Assume a $$0$ existing balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for accounts receivable.