Question

Chapter 7 Help Se 9 Required information (The following information applies to the questions displayed below Jarden Company has credit sales of $3,600,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31, 2017, receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category accounts This information is summarized here Expected Percent 1.25% 2.00 6.50 collectible eivable Expec 1, to 38 days past 254,0e0 81 to 6e days past 61 to 98 days past due Over 98 days past due 38,800 32.75 12,880 68.00 1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accounts receivable 1 to 30 31 to 60 61 to 90 Over 90 of oe for un K Prev 9 10 of 10Next > O Type here to

Answer 1

Percent uncollectible Estimated Accounts receivable (a) uncollectible- (a) x (b) $ 830,000:x $ 254,000:x $ 86,000x $ 38,000x $ 12,000x $ 10,375.00 $ 5,080.00 $ 5,590.00 $ 12,445.00 8,160.00 41,650.00 Not due 1 to 30 31 to 60 61 to 90 Over 90 1.25% 2.00%- 6.50% 32.75% 68.00%- Estimated balance of allowance for uncollectibles