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	$407.54	5-Dec
#495	609.58	2-Dec
#427	243.70	5-Nov
#100	96.94	28-Jun
#300	659.05	3-Oct
#410	595.78	31-Oct
#204	55.73	25-Aug
#498	676.30	28-Dec
#499	245.46	28-Dec
#487	664.25	28-Nov
#310	184.58	8-Oct
#178	571.74	7-Aug
#497	297.81	5-Dec
#488	127.02	29-Nov
#105	16.65	5-Jul
	$5,452.13

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.