Preparing an Aging Schedule to Estimate Allowance for Doubtful Accounts

A review of open invoices of Sketchers Inc. results in the following report.

Invoice	Amount	Date (Each from this year)
#496	$254.71	5-Dec
#495	380.99	2-Dec
#427	152.31	5-Nov
#100	60.59	28-Jun
#300	411.91	3-Oct
#410	372.37	31-Oct
#204	34.83	25-Aug
#498	422.69	28-Dec
#499	153.42	28-Dec
#487	415.16	28-Nov
#310	115.36	8-Oct
#178	357.34	7-Aug
#497	186.13	5-Dec
#488	79.39	29-Nov
#105	10.41	5-Jul
	$3,407.61

Required

a. Organize the list of open invoices as of December 31 into a table with the following aging categories across the top: (1) less than 30 days, (2) 31–60 days, (3) 60–90 days, and (4) greater than 90 days.

b. Assume that the company estimates the allowance for doubtful accounts based upon the following percentages applied to the appropriate aging categories: (1) 1% for less than 30 days, (2) 5% for 31–60 days, (3) 30% for 60–90 days, and (4) 60% for greater than 90 days. What is the ending allowance for doubtful accounts as estimated by the company?

Complete the following table to complete requirements of parts a and b.

Note: Round each dollar amount to two decimal places.

	Less than 30 days	31-60 Days	60-90 Days	Greater than 90 Days	Total
Total Receivables	Answer	Answer	Answer	Answer	Answer
Percentage	Answer	Answer	Answer	Answer
Estimated Uncollectibles	Answer	Answer	Answer	Answer	Answer

Answer rating: 100% (QA)

Solution Table 3160 Days 6090 Days Greater than Tota... View the full answer