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Problem 6 (14% The following aging schedule was prepared by an inexperienced bookkeeper for Pear Corporation at December 31, 2019: Amount Receivable Estimated % Uncollectible
Problem 6 (14% The following aging schedule was prepared by an inexperienced bookkeeper for Pear Corporation at December 31, 2019: Amount Receivable Estimated % Uncollectible Estimated Amount Uncollectible Age Group -0- Not Yet Due Overdue $100.000 $80,000 0% 25% $20,000 Part A Calculate the net realizable value of Pears' accounts receivable at December 31, 2019 using the data in the above aging schedule: Part B A friend wonders why there's a need to estimate uncollectible accounts (bad debts). "Wouldn't it be more objective to wait until there's solid evidence that a given customer will never make payment?" Required: Respond to your friend's comment: Part C The bookkeeper's aging schedule differed from a typical schedule in two major ways. Identify the two errors made by the bookkeeper and indicate how they made the aging schedule less useful and less accurate Bookkeeper's Errors: 1. 2. 8
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