Question

1. The following information is available for Coogan, Inc.

Accounts receivable aging schedule at 12/31/12:

		Percent
Age	Amount	Uncoll.
0-90	$10,400	1
90-180	$3,900	8
over 180	$3,510	20

Additional information:

Allowance for doubtful accounts balance at 1/1/12	$2,600
Write-offs during 2012	$2,340
Accounts receivable balance at 1/1/12	$28,600

At December 31, 2012, Coogan will report an allowance for doubtful accounts balance in the amount of:

a. $858

b. $2,340

c. $4,940

d. $1,118

e. None of the above

Answer 1

Answer:

Percent Estimated Age Group Amount Uncollectible Allowance Calculation 0-90 days $ 10,400 1% $ 104 $10,400 X 1% 90-180 days $ 3,900 8% $ 312 $3,900 X 8% Over 180 days $ 3,510 20% $ 702 $3,510 X 20% Estimated balance of doubtful debts on 31st December, 2012 $ 1,118 Hence, the correct option is Option D - $1,118.