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Use the following information from The Pot Shop's Restaurant Supplies to answer the homework questions. Round all answers to the nearest whole dollar. Note
Use the following information from The Pot Shop's Restaurant Supplies to answer the homework questions. Round all answers to the nearest whole dollar. Note that not all of the information may be required for every question. The Pot Shop's Restraurant Supply Accounting Receivable Aging as of September 30, 2023 Current 155,000 1-90 120,000 91-180 87,000 181-360 66,000 361+ Total 12,000 440,000 The Pot Shop had total sales of $160,000 for the month of September. As of August 31, The Pot Shop had a credit balance of $60,000 in their Allowance for Doubtful Accounts. The Pot Shop uses the Aging of Receivables method to estimate their bad debt. The following chart shows the reserve rates they've selected based on historical bad debt rates. Aging of Receivables Reserve Rates Aging Bucket Reserve Rate 1% Current 1-90 91-180 181-360 361+ 3% 20% 40% 85% What should the reserve be for the Current Bucket? What should the reserve be for the 1-90 days past due bucket? What should the reserve be for the 91-180 days past due bucket? What should the reserve be for the 181-360 days past due bucket? What should the reserve be for the 361+ days past due bucket?
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