Preparing an Aging Schedule to Estimate Allowance for Doubtful Accounts

A review of open invoices of Sketchers Inc. results in the following report.

Invoice	Amount	Date (Each from this year)
#496	$305.65	5-Dec
#495	457.18	2-Dec
#427	182.77	5-Nov
#100	72.71	28-Jun
#300	494.29	3-Oct
#410	446.84	31-Oct
#204	41.80	25-Aug
#498	507.23	28-Dec
#499	184.10	28-Dec
#487	498.19	28-Nov
#310	138.43	8-Oct
#178	428.81	7-Aug
#497	223.36	5-Dec
#488	95.27	29-Nov
#105	12.49	5-Jul
	$4,089.12

Required

a. Organize the list of open invoices as of December 31 into a table with the following aging categories across the top: (1) less than 30 days, (2) 3160 days, (3) 6090 days, and (4) greater than 90 days.

b. Assume that the company estimates the allowance for doubtful accounts based upon the following percentages applied to the appropriate aging categories: (1) 1% for less than 30 days, (2) 5% for 3160 days, (3) 30% for 6090 days, and (4) 60% for greater than 90 days. What is the ending allowance for doubtful accounts as estimated by the company?

Complete the following table to complete requirements of parts a and b.

Note: For each of the dollar amounts that you enter into the table below, round to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425.

	Less than 30 days	31-60 Days	60-90 Days	Greater than 90 Days	Total
Total Receivables	Answer	Answer	Answer	Answer	Answer
Percentage	Answer	Answer	Answer	Answer
Estimated Uncollectibles	Answer	Answer	Answer	Answer	Answer