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Required information [The following information applies to the questions displayed below.] The Milwaukee Brewers Pro Shop sometimes makes large sales to other businesses. Those sales
Required information [The following information applies to the questions displayed below.] The Milwaukee Brewers Pro Shop sometimes makes large sales to other businesses. Those sales are made on account with the terms n/30. Based on past history, some of their business customers do not pay their receivables balance in full. Therefore, the Brewers use the allowance method to estimate its bad debts expense. As of 12/31 the Brewers allowance for doubtful accounts had an unadjusted credit balance of $15,500. To help estimate its allowance and bad debts expense, the Brewers create an aging of accounts receivable schedule. Below is their aging schedule as of 12/31. Accounts Receivable $ 860,000 Age of Accounts Receivable Not yet due 1 to 30 days past due Expected Percent Uncollectible 1.20% 344,000 1.95 68,800 31 to 60 days past due 6.45 34,400 13,760 61 to 90 days past due Over 90 days past due 32.50 67.00 Required: 1. Complete the table below for the Brewers aging of A/R schedule. 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 $ 0
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