Rowen Company has accounts receivable of $241,000 at September 30, 2015. An analysis of the accounts shows

Question:

Rowen Company has accounts receivable of $241,000 at September 30, 2015. An analysis of the accounts shows the following:

Month of Sale Balance

September .......................... $170,000

August ......................................35,700

July .............................................20,000

April, May, and June ..................15,300

$241,000

Credit terms are 2/10, n/30. On October 1, 2014, the Allowance for Doubtful Accounts had a credit balance of $17,600. During the year, the company wrote off accounts receivable of $19,000 as uncollectible. The company uses an aging schedule to estimate uncollectible accounts. The company's percentage estimates of bad debts are as follows:

Number of Days Outstanding ___________________ Estimated % Uncollectible

0-30 ............................................................1%

31-60 ...........................................................10%

61-90 ...........................................................25%

Over 90 .........................................................60%

Instructions

(a) Prepare an aging schedule to determine the total estimated uncollectible accounts at September 30, 2015.

(b) What is the net realizable value of the accounts receivable at September 30, 2015?

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... Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...