Question

Required Information [The following information applies to the questions displayed below.) Jarden Company has credit sales of $2,900,000 for year 2018. On December 31, 2018, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $21,659. Jarden prepares a schedule of its December 31, 2018 accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. December 31, 2018 Accounts Receivable $ 580,000 232.000 46,400 23,200 4.640 Age of house Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Expected Percent Uncollectible 1.250 2.00 6.50 32.75 68.00 1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2018, using the aging of accounts receivable method. Accounts Receivable Percent Uncollectible (W. X) Estimated Uncollectible Not due: 1 to 30: 31 to 60 61 to 90 x Over 90 Estimated balance of allowance for uncollectibles

Answer 1

B C D E F G Account Percentage Receivable Uncollectable 2 Not Yet Due $ 580,000 X 1.25% 3 01 to 30 $ 232,000 X 4 31 to 60 $ 46,400 X 6.50% 5 61 to 90 $ 23,200 X 32.75% 6 Over 90 $ 4,640 X 68.00% 7 Estimated Balance of Allowance for uncollectables Estimated Uncollectable = $ 7,250.0 4,640.0 $ 3,016.0 7,598.0 = $ 3,155.2 $

B C F G Account Percentage 1 Receivable Uncollectable 2 Not Yet Due 580000 | X 0.0125 3 01 to 30 232000 x 0.02 4 31 to 60 46400 x 0.065 5 61 to 90 23200 x 0.3275 6 Over 90 4640 X 0.68 7 Estimated Balance of Allowance for uncollectables Estimated Uncollectable =+B2*D2 =+B3*D3 =+B4*D4 =+B5*D5 =+B6*D6 SUM(F2:F6) Credit