Calculate Bad Debts. On December 31, after many attempts at collecting the outstanding balance of Copper Gallery,

 

Calculate Bad Debts.

Transcribed Image Text:

On December 31, after many attempts at collecting the outstanding balance of Copper Gallery, the controller decided to write off that balance. Aylmer calculates bad debt on trade receivables only, not on project receivables. Bad debt is estimated to be: 0-30 days 31 – 60 days 5% 61 – 90 days 7.5% 91 – 120 days 10% Over 120 days 15% 1% In the excel spreadsheet, see the tab labelled "Trade Accounts Receivable Detail" to perform any necessary calculations. On December 31, after many attempts at collecting the outstanding balance of Copper Gallery, the controller decided to write off that balance. Aylmer calculates bad debt on trade receivables only, not on project receivables. Bad debt is estimated to be: 0-30 days 31 – 60 days 5% 61 – 90 days 7.5% 91 – 120 days 10% Over 120 days 15% 1% In the excel spreadsheet, see the tab labelled "Trade Accounts Receivable Detail" to perform any necessary calculations.

Answer rating: 100% (QA)

Particulars 030 Days 3160 Days 6190 Days 91120 Days Over 120 Total Trade Receivables A ... View the full answer