Fey Corporation has aged its accounts receivable and estimated uncollectible accounts as follows (in millions):

a. Determine the appropriate allowance for uncollectible accounts. Show calculations!

b. How will Fey Corporation report its accounts receivable on the balance sheet?

Transcribed Image Text:

Age of Receivables Current 30-60 days past due 61-90 days past due Over 90 days past due Total Balance $5,500 1,200 850 420 $7,970 Estimated % uncollectible 1% 3% 6% 10% Age of Receivables Current 30-60 days past due 61-90 days past due Over 90 days past due Total Balance $5,500 1,200 850 420 $7,970 Estimated % uncollectible 1% 3% 6% 10%

Answer rating: 100% (QA)

Age of Receivables Balance Estimated uncollectible Current 5500 1 3060 days past due 1200 3 619... View the full answer