The Steven Co. estimates its Allowance for Doubtful Accounts by aging its accounts receivable. At the end
Question:
The Steven Co. estimates its Allowance for Doubtful Accounts by aging its accounts receivable. At the end of 20X1 its accounts receivable were aged as follows:
0-30 days $ 1,000,000
31-90 days 500,000
over 90 days 100,000
The company estimates that all amounts outstanding for 30 days or less will be collected but the 5% of the amounts outstanding between 31 and 90 days and 50% of the amount outstanding over 90 days will eventually be uncollectible. The balance in the Allowance for Doubtful Accounts at the beginning of 20X1 was $50,000. During 20X1, $35,000 of uncollectible accounts were written off.
What is the Uncollectible Accounts Expense for 20X1
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood