Thunderwood Industries has a past history of uncollectible accounts, as shown below. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 8-8.
In Exercise 8-8, The accounts receivable clerk for Thunderwood Industries prepared the following partially completed aging of receivables schedule as of the end of business on August 31:

The following accounts were unintentionally omitted from the aging schedule and not included in the subtotals above:

Age Class Percent Uncollectible
Not past due ......... 2%
1–30 days past due..... 6
31–60 days past due .... 12
61–90 days past due.... 30
Over 90 days past due... 75

  • CreatedFebruary 28, 2014
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