Preparing an Aging Schedule to Estimate Allowance for Doubtful Accounts

A review of open invoices of Sketchers Inc, results in the following report.

Required

a$.$ Organize the list of open invoices as of December $31$ into a table with the

following aging categories across the top: $(1)$ less than $31$ days, $(2)31-60$ days, $(3)$

$61-90$ days, and $(4)$ greater than $90$ days.

b$.$ Assume that the company estimates the allowance for doubtful accounts based on

the following percentages applied to the appropriate aging categories: $(1)1\%$ for less

than $31$ days, $(2)5\%$ for $31-60$ days, $(3)30\%$ for $61-90$ days, and $(4)60\%$ for greater

than $90$ days. What is the ending balance of the allowance for doubtful accounts as

estimated by the company?

Complete the following table to complete requirements of parts a and $b.$

Note: For each of the dollar amounts that you enter into the table below, round

to two digits after the decimal; for example, enter $1\mathrm{.}42$ for $1\mathrm{.}424,$ or $1\mathrm{.}43$ for

$1\mathrm{.}425.$