s Perry Materials Supply was preparing for the year-end close, their balances were as follows: Accounts Receivable - $146000 (dr) Allowance for uncollectible accounts - $6200 (dr) Uncollected Account Expense - $0 Perry Materials uses the aging method and has completed the following analysis of the accounts receivable: Customer 1-30 Days 31-60 Days 61-90 Days Over 90 Days Total Balance Johnson $4,600 $3,200 $7,800 Hot Pots, Inc. 800 1,000 1,800 Potter 40,000 550 40,550 Harrison 3,600 900 4,500 Marx 2,000 50 2,050 Younger 65,000 65,000 Merry Maids 5,900 5,900 Acher 12,000 6,400 18,400 Totals $127,500 $13,750 $3,700 $1,050 $146,000 Uncollectible percentage 2% 10% 20% 40% Estimated uncollectible amount $2,550 $1,375 $740 $420 $5,085 Required: How much will the Uncollectible account expense for the year be? What will the final balance in the Allowance account be, after adjusting for uncollectible account expense?
As Perry Materials Supply was preparing for the year-end close, their balances were as follows:
Accounts Receivable - $146000 (dr)
Allowance for uncollectible accounts - $6200 (dr)
Uncollected Account Expense - $0
Perry Materials uses the aging method and has completed the following analysis of the accounts receivable:
|
Customer |
1-30 Days |
31-60 Days 61-90 Days |
Over 90 Days |
Total Balance |
|
|
Johnson |
$4,600 |
$3,200 |
$7,800 |
||
|
Hot Pots, Inc. |
800 |
1,000 |
1,800 |
||
|
Potter |
40,000 |
550 |
40,550 |
||
|
Harrison |
3,600 |
900 |
4,500 |
||
|
Marx |
2,000 |
50 |
2,050 |
||
|
Younger |
65,000 |
65,000 |
|||
|
Merry Maids |
5,900 |
5,900 |
|||
|
Acher |
12,000 |
6,400 |
18,400 |
||
|
Totals |
$127,500 |
$13,750 |
$3,700 |
$1,050 |
$146,000 |
|
Uncollectible percentage |
2% |
10% |
20% |
40% |
|
|
Estimated uncollectible amount |
$2,550 |
$1,375 |
$740 |
$420 |
$5,085 |
Required:
- How much will the Uncollectible account expense for the year be?
- What will the final balance in the Allowance account be, after adjusting for uncollectible account expense?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
