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The accounts receivable listing of FoxDen Inc. shows the following on December 31, 2020. The general ledger showed a $250 credit balance in Allowance for
The accounts receivable listing of FoxDen Inc. shows the following on December 31, 2020. | ||||
The general ledger showed a $250 credit balance in Allowance for Doubtful Accounts before adjustment | ||||
Name of customer | Invoice date | Amount | ||
Cycles Inc. | March 5, 2020 | $950 | ||
First Corporation | August 12, 2020 | 500 | ||
First Corporation | December 10, 2020 | 550 | ||
Garron Inc. | December 15, 2020 | 200 | ||
Heartwell Inc. | August 15, 2020 | 480 | ||
Heartwell Inc. | July 5, 2020 | 915 | ||
Leash Inc. | May 5, 2020 | 575 | ||
Sign Corporation | December 15, 2020 | 825 | ||
Spares Inc. | November 18, 2020 | 325 | ||
Summer Corporation | October 10, 2020 | 650 | ||
Required: | ||||
| ||||
Compute estimated loss based on the following: | ||||
Age (days) | Estimated Loss Percentage | |||
1-30 | 2% | |||
31-60 | 3% | |||
61-90 | 5% | |||
91-120 | 10% | |||
121-150 | 25% | |||
Over 150 | 50% |
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