Question EX9-9

Wadell industries has a past history of collectibles accounts as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 9-8

Lucky's Auto Repai September 1,100 Stop Au 9,750 July 15 Reliable Auto Repai August 24 ,800 dent Auto 4,000 May 17 Valley Repair & Tow Determine the number of days each account is past due as of october 31 EX 9-8 Aging of receivables schedule following The accounts receivable clerk for Waddell Industries prepared the Aug completed aging of receivables schedule as of the end of business on Days Past Due Not Tower Balance Due 130 31-60 61-90 90 3 Customer 4 Acme Industries Inc 3,000 3,000 4,500 5 Alliance Company 4,50 21 Zollinger Company 1.050,000 600,000 220,000 115,000 85,000 30000 22 Subtotals The following accounts were unintentionally omitted from the aging schedule and nou included in the preceding subtotals: Due Date Balance Customer $44,500 May 1 Builders Industries 21,000 June 20 Elkhorn Company 7,500 July 13 Granite Creek Inc. 4,000 September 9 Lockwood Company 3,000 August 7 Teton Company a. Determine the number of days past due for each of the preceding accounts as of August 31 b. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals. EX 9-9 Estimating allowance for doubtful accounts Waddell Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts. based on the aging of receivables schedule you com pleted in Exercise 9-8 Percent Age Class Uncollectible Not past due 3% 1-30 days past due 31-60 days past due 61-90 days past due 35 Over 90 days past due 80