Question

Required information Problem 9-3A Aging accounts receivable and accounting for bad debts LO P2, P3 [The following information applies to the questions displayed below.] Jarden Company has credit sales of $2,200,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,666. Jarden prepares a schedule of its December 31, 2017 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, 2017 Accounts Receivable $ 440,000 176,000 35, 200 17,600 3, 520 Age of Accounts 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 1.25% 2.00 6.50 32.75 68.00

Answer 1

CALCULATION OF ESTIMATED ALLOWANCE FOR DOUBTFULL ACCOUNTS AS ON DECEMBER 31, 2017
Age Group	Account Receivable	X	Percentage Uncollectable	=	Estimated Uncollectable
Not Yet Due	$                        4,40,000	X	1.25%	=	$                5,500
01 to 30	$                        1,76,000	X	2.00%	=	$                3,520
31 to 60	$                            35,200	X	6.50%	=	$                2,288
61 to 90	$                            17,600	X	32.75%	=	$                5,764
Over 90	$                              3,520	X	68.00%	=	$                2,394
Estimated Balance of Allowance for uncollectables					$              19,466