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Vulcan Service Co. experienced the following transactions for 2016, its first year of operations: 1. Provided $86,000 of services on account. 2. Collected $51,600 cash
Vulcan Service Co. experienced the following transactions for 2016, its first year of operations: | |
1. | Provided $86,000 of services on account. |
2. | Collected $51,600 cash from accounts receivable. |
3. | Paid $28,000 of salaries expense for the year. |
4. | Adjusted the accounts using the following information from an accounts receivable aging schedule: |
Number of Days Past Due | Amount | Percent Likely to Be Uncollectible | Allowance Balance | ||
Current | $ | 25,456 | .01 | ||
0-30 | 1,720 | .05 | |||
31-60 | 2,408 | .10 | |||
61-90 | 2,064 | .30 | |||
Over 90 days | 2,752 | .50 | |||
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