Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tri Town Corporation has accounts receivable of $93,900 at March 31, 2018. An analysis of the accounts shows these amounts. Balance, March 31 2018 2017

image text in transcribedimage text in transcribed

Tri Town Corporation has accounts receivable of $93,900 at March 31, 2018. An analysis of the accounts shows these amounts. Balance, March 31 2018 2017 $65,300 $73,900 Month of Sale March (current) February (1 - 30 days past due) December and January (31 - 90 days past due) (over 90 days past due) 11,400 7,400 9,700 2,600 7.500 1,100 $93,900 $85,000 Credit terms are 2/10, n/30. At March 31, 2018, there is an unadjusted $2,600 credit balance in Allowance for Doubtful Accounts. The company uses the percentage of receivables by age category for estimating uncollectible accounts Tri Town's estimates of bad debts are as shown below. Estimated Percentage Uncollectible 2% Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due 6% 30% 50% Prepare an aging schedule to determine the total estimated uncollectibles at March 31, 2018. Accounts Receivable Amount % Estimated Uncollectible $ 65300 2 $ Current 1306 11400 5 570 1-30 days past due 9700 30 2910 31-90 days past due 7500 50 3750 Over 90 days past due $ 8536

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

5th Edition

9781118560952, 1118560957, 978-0470239803

More Books

Students also viewed these Accounting questions