Question

Coronado Industries has accounts receivable of $89,200 at March 31, 2017. At March 31, 2017, there is a $2,151 balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company’s estimates of bad debts are as shown below. Balance, March 31 Estimated Percentage Uncollectible Age of Accounts 2017 2016 Current $60,400 $80,160 2 % 1–30 days past due 12,000 8,610 5 31–90 days past due 10,200 2,400 31 Over 90 days past due 6,600 1,070 48 $89,200 $92,240 Determine the total estimated uncollectibles. The total estimated uncollectibles $

Answer 1

Calculation of total estimated uncollectible:

Age of accounts	Amount	Estimated Percentage Uncollectible	Total Estimated Uncollectible
Current	60,400	2%	1,208
1-30 days past due	12,000	5%	600
31-90 days past due	10,200	31%	3,162
Over 90 days past due	6,600	48%	3,168
Total Estimated Uncollectible			8,138

Hence, Estimated Uncollectible = 8,138.