The Fossell Fashions Store uses the accounts receivable aging method to estimate uncollectible accounts On February 1, 20 Atilde 7, the balance of the Accounts Receivable account was a debit of $446,341, and the balance of Allowance for Uncollectible Accounts was a credit of $43,000 During the year...

The Fossell Fashions Store uses the accounts receivable aging method to estimate uncollectible accounts. On February 1,

Question:

The Fossell Fashions Store uses the aging method to estimate uncollectible accounts. On February 1, 20Ã—7, the balance of the account was a debit of $446,341, and the balance of Allowance for Uncollectible Accounts was a credit of $43,000. During the year, the store had sales on account of $3,724,000, sales returns and allowances of $63,000, worthless accounts written off of $44,300, and collections from customers of $3,214,000. As part of the end-of-year (January 31, 20Ã—8) procedures, an aging analysis of is prepared. The analysis, which is partially complete, is as follows:

The Fossell Fashions Store uses the accounts receivable aging method

To finish the analysis, the following accounts need to be classified:

From past experience, the company has found that the following rates are realistic for estimating uncollectible accounts:
Percentage Considered
Time Uncollectible
Not yet due.................................... 2
1-30 days past due ........................... 5
31-60 days past due ......................... 15
61-90 days past due ......................... 25
Over 90 days past due ........................50
Required
1. Complete the aging analysis of accounts receivable.
2. Compute the end-of-year balances (before adjustments) of Accounts
Receivable and Allowance for Uncollectible Accounts.
3. Prepare an analysis computing the estimated uncollectible accounts.
4. How much is Fossell Fashions Store's estimated uncollectible accounts expense for the year? (Round the adjustment to the nearest whole dollar.)
5. User Insight: What role do estimates play in applying the aging analysis? What factors might affect these estimates?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...