Question
Pharoah Company has accounts receivable of $193,000 at September 30, 2024. An analysis of the accounts shows the following: Month of Sale Balance September $136,000
Pharoah Company has accounts receivable of $193,000 at September 30, 2024. An analysis of the accounts shows the following:
Month of Sale | Balance | |||
---|---|---|---|---|
September | $136,000 | |||
August | 29,000 | |||
July | 16,000 | |||
April, May, and June | 12,000 | |||
$193,000 |
Credit terms are 2/10, n/30. The unadjusted balance in the Allowance for Doubtful Accounts on September 30, 2024, is $1,700 debit. The company uses an aging schedule to estimate uncollectible accounts. The companys percentage estimates of bad debts are as follows:
Number of Days Outstanding | Estimated % Uncollectible | |||
---|---|---|---|---|
030 | 1% | |||
3160 | 10% | |||
6190 | 25% | |||
Over 90 | 60% |
(a)
Prepare an aging schedule to determine the total estimated uncollectible accounts at September 30, 2024.
Age of Accounts | Amount | % | Estimated Uncollectible | |||||||
---|---|---|---|---|---|---|---|---|---|---|
0-30 days outstanding | $136,000 | 1% | $enter a dollar amount | |||||||
31-60 days outstanding | 29,000 | 10% | enter a dollar amount | |||||||
61-90 days outstanding | 16,000 | 25% | enter a dollar amount | |||||||
Over 90 days outstanding | 12,000 | 60% | enter a dollar amount | |||||||
$enter a total amount |
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