Question

Consider the following analysis of Accounts Receivable, February 28, 20XO: Click the icon to view the data.) Requirement 1. Prepare an aging schedule, classifying ages into four categories: 1 to 30 days, 31 to 60 days, 61 to 90 days, and over 90 days. Assume that the prospective bad debt percentages for each category are 8%, 12%, 22%, and 40%, respectively. What is the ending balance in the Allowance for Uncollectible Accounts? Requirement 1. Prepare an aging schedule, classifying ages into four categories: 1 to 30 days, 31 to 60 days, 61 to 90 days, and over 90 days. Assume that the prospective bad debt percentages for each category are 8%, 12%, 22%, and 40%, respectively. What is the ending balance in the Allowance for Uncollectible Accounts? Begin by preparing the aging schedule, then determine the allowance for each category and the resuling ending balance for the total Allowance for Uncollectible Accounts. (Leave unused cells blank. Round to the nearest whole dollar.)

Answer 1

AGING ANALYSIS

Name of the Customer	Total	1-30 days	31-60 days	61-90 days	Over 90 days
Lilo Nurseries	40,000	-	-	8,000	32,000
Stephen's Landscaping	26,000	23,400	2,600	-	-
Rasetta Garden Supply	36,000	-	7,200	28,800	-
Cinco Farm	42,000	42,000	-	-	-
Sterling Florists	13,000	11,700	-	1,300	-
Other accounts	120,000	66,000	6,000	36,000	12,000
TOTAL	277,000	143,100	15,800	74,100	44,000
Prospective bad debt percentages		8%	12%	22%	40%
Bad debt allowance to be provided	47,246	11,448	1,896	16,302	17,600