Required information

Problem 9-3A Aging accounts receivable and accounting for bad debts LO P2, P3

[The following information applies to the questions displayed below.]

Jarden Company has credit sales of $2,400,000 for year 2017. On December 31, 2017, the companys Allowance for Doubtful Accounts has an unadjusted credit balance of $15,204. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here.

December 31, 2017

Age of

Expected Percent

Accounts Receivable

Accounts Receivable

Uncollectible

$480,000

Not yet due

1.00%

$192,000

1 to 30 days past due

1.75

$38,400

31 to 60 days past due

6.25

$19,200

61 to 90 days past due

31.50

$3,840

Over 90 days past due

65.00

Required:

1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accounts receivable method.

Accounts Receivable Percent Uncollectible (###%) Estimated Uncollectible | | Not due 1 to 30 31 to 60 61 to 90 Over 90 Estimated balance of allowance for uncollectibles