Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Pharaoh Company has accounts receivable of $85,860 at March 31, 2027. At March 31, 2027, there is a $1,890 balance in Allowance for Doubtful Accounts
Pharaoh Company has accounts receivable of $85,860 at March 31, 2027. At March 31, 2027, there is a $1,890 balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as follows.
Determine the total estimated uncollectibles.
\begin{tabular}{lccc} & \multicolumn{2}{c}{ Balance, March 31 } & Estimated Percentage \\ \cline { 2 - 3 } Age of Accounts & 2027 & 2026 & Uncollectible \\ Current & $58,500 & $67,500 & 2% \\ 1-30 days past due & 11,620 & 7,200 & 5 \\ 31-90 days past due & 9,080 & 2,160 & 30 \\ Over 90 days past due & 6,660 & 990 & 50 \\ & $85,860 & $77,850 & \end{tabular}Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started