Problem 3 (10 points): Heller Corporation has aged its accounts receivable and estimated uncollectible accounts as...

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Problem 3 (10 points): Heller Corporation has aged its accounts receivable and estimated uncollectible accounts as follows (i

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Answer 1

Answer #1

a.
Calculation of allowance for uncollectible accounts
Age of receivables	Balance	Estimated % uncollectible	Estimated amount uncollectible
Current	$11,000	1%	$110	11000*1%
30-60 days past due	$2,400	3%	$72	2400*3%
61-90 days past due	$1,700	6%	$102	1700*6%
Over 90 days past due	$840	10%	$84	840*10%
Total	$15,940		$368

The allowance for uncollectible accounts would be $368.

b.
Partial balance sheet disclosing accounts receivable is shown below
Partial balance sheet
Accounts receivable	$15,940
Less: Allowance for doubtful accounts	$368
Accounts receivable, net	$15,572

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Answer 2

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