Question
Waterway Industries uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end. (a) Calculate
Waterway Industries uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end.
(a)
Calculate the total estimated bad debts based on the information below.
Number of Days Outstanding | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Total | 030 | 3160 | 6190 | 91120 | Over 120 | |||||||
Accounts receivable | $506,000 | $333,000 | $93,000 | $47,000 | $20,000 | $13,000 | ||||||
% uncollectible | 1% | 4% | 5% | 8% | 11% | |||||||
Estimated bad debts | $enter estimated bad debts in dollars | $enter estimated bad debts in dollars | $enter estimated bad debts in dollars | $enter estimated bad debts in dollars | $enter estimated bad debts in dollars | $enter estimated bad debts in dollars |
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