Given Table below Answer the question. 6. The accounts receivable age analysis for the Taylor Trading Company
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6. The accounts receivable age analysis for the Taylor Trading Company on December 31, 20-1, shows the following totals: Days Overdue Balance Current 1-30 31-60 61-90 90+ $95 800 $78 600 $7 700 $2.600 $3 200 $3 700 (a) Calculate the allowance for doubtful accounts if it is estimated that the following percentages are uncollectible: Current, 3 percent; 1-30 days, 10 percent; 31-60 days, 15 percent; 61-90 days, 25 percent; over 90 days, 45 percent. (b) Calculate the estimated value of the net realizable accounts receivable. (c) Make an adjustment entry for the estimated bad debt expense in question (a) as of Dec. 31st. 6. The accounts receivable age analysis for the Taylor Trading Company on December 31, 20-1, shows the following totals: Days Overdue Balance Current 1-30 31-60 61-90 90+ $95 800 $78 600 $7 700 $2.600 $3 200 $3 700 (a) Calculate the allowance for doubtful accounts if it is estimated that the following percentages are uncollectible: Current, 3 percent; 1-30 days, 10 percent; 31-60 days, 15 percent; 61-90 days, 25 percent; over 90 days, 45 percent. (b) Calculate the estimated value of the net realizable accounts receivable. (c) Make an adjustment entry for the estimated bad debt expense in question (a) as of Dec. 31st.
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Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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