AGING METHOD

The following information is available regarding the outstanding accounts receivable of company XYZ at May 31, 2020

Customers

March

April

May

June

X

$ 5240

1520

7300

0

Y

$2680

0

0

5000

Z

$5230

4000

0

2000

Assume n/30 credit term

Estimates of bad debt using the following

Not Due 1-29 after due 30-59 after due

8% 10% 35%

The company had a debit balance of ADA of $1100 REQUIRED

60-89 after due

50%

>90 days after due

70%

A. Calculate the desired balance

B. Use T A/C to find the bad debts

C. Journalize

D. Give the balance sheet extract of Net Realizable Value

AGING METHOD The following information is available regarding the outstanding accounts receivable of company XYZ at May 31, 2020 Customers March X S 5240 Y $2680 Z $5230 Assume n/30 credit term April 1520 0 4000 May 7300 0 0 June 0 5000 2000 Estimates of bad debt using the following Not Due 1-29 after due 30-59 after due 60-89 after due >90 days after due 8% 10% 35% 50% 70% The company had a debit balance of ADA of $1100 REQUIRED A. Calculate the desired balance B. Use T - A/C to find the bad debts C. Journalize D. Give the balance sheet extract of Net Realizable Value