Perry Materials Supply uses the aging method to account for uncollectible accounts. At the end of...
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Perry Materials Supply uses the aging method to account for uncollectible accounts. At the end of the year, the balance in Accounts receivable was $146,000 and Perry prepared the following aging schedule. Customer Johnson Hot Pots, Inc. Potter Harrison Marx Younger Merry Maids Archer Total Uncollectible percentage Estimated uncollectible amount 1-30 days 31-60 days61-90 days $4,600 $3,200 $ 800 40,000 65,000 5,900 12,000 $127,500 550 3,600 Over 90 days $7,800 1,800 40,550 4,500 2,050 65,000 5,900 6,400 18,400 $13,750 $3,700 $1,050 $146,000 900 2,000 $1,000 Total Balance 50 Based on past history, Perry uses 2% for current receivables (1-30 days), 10% for 31-60 days, 20% for 61-90 days, and 40% for over 90 days. Please complete the schedule and calculate the estimated amount of uncollectible accounts. Perry Materials Supply uses the aging method to account for uncollectible accounts. At the end of the year, the balance in Accounts receivable was $146,000 and Perry prepared the following aging schedule. Customer Johnson Hot Pots, Inc. Potter Harrison Marx Younger Merry Maids Archer Total Uncollectible percentage Estimated uncollectible amount 1-30 days 31-60 days61-90 days $4,600 $3,200 $ 800 40,000 65,000 5,900 12,000 $127,500 550 3,600 Over 90 days $7,800 1,800 40,550 4,500 2,050 65,000 5,900 6,400 18,400 $13,750 $3,700 $1,050 $146,000 900 2,000 $1,000 Total Balance 50 Based on past history, Perry uses 2% for current receivables (1-30 days), 10% for 31-60 days, 20% for 61-90 days, and 40% for over 90 days. Please complete the schedule and calculate the estimated amount of uncollectible accounts.
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The completed aging schedule and the calculated estimated amount of uncollectible accounts are as fo... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
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