Questions: On December 31, a company has an unadjusted credit balance of 1,450 in its Allowance for Doubtful Accounts. Following is a schedule of its December 31 accounts receivable by age. Age of Accounts Receivable Accounts Receivable Expected Percent Uncollectible Not yet due 104,000 1.00% 1 to 30 days past due 62,400 2.50% 31 to 60 days past due 20,800 11.00% 61 to 90 days past due 10,400 37.00% Over 90 days past due 2,600 77.00% Total 200,200 Calculate the required balance of the Allowance for Doubtful Accounts on December 31 using an aging of accounts receivable. Accounts Receivable Percent Uncollectible Estimated Uncollectible Not due: x = 1 to 30: x = 31 to 60: x 61 to 90: x Over 90: x = Estimated balance of allowance for uncollectibles

Transcript text: On December 31, a company has an unadjusted credit balance of $\$ 1,450$ in its Allowance for Doubtful Accounts. Following is a schedule of its December 31 accounts receivable by age. \begin{tabular}{lrr} Age of Accounts Receivable & \begin{tabular}{c} Accounts \\ Receivable \end{tabular} & \begin{tabular}{c} Expected Percent \\ Uncollectible \end{tabular} \\ \hline Not yet due & $\$ 104,000$ & $1.00 \%$ \\ 1 to 30 days past due & 62,400 & $2.50 \%$ \\ 31 to 60 days past due & 20,800 & $11.00 \%$ \\ 61 to 90 days past due & 10,400 & $37.00 \%$ \\ Over 90 days past due & 2,600 & $77.00 \%$ \\ Total & $\$ 200,200$ & \\ \hline \end{tabular} Calculate the required balance of the Allowance for Doubtful Accounts on December 31 using an aging of accounts receivable. \begin{tabular}{|l|l|l|l|l|l|} \hline & \begin{tabular}{c} Accounts \\ Receivable \end{tabular} & \multicolumn{1}{|c|}{\begin{tabular}{c} Percent \\ Uncollectible \end{tabular}} & & \begin{tabular}{c} Estimated \\ Uncollectible \end{tabular} & \\ \hline Not due: & & x & & $=$ & \\ \hline 1 to $30:$ & & x & & $=$ & \\ \hline 31 to $60:$ & & x & & & \\ \hline 61 to $90:$ & & x & & & \\ \hline Over $90:$ & & x & $=$ & & \\ \hline Estimated balance of allowance for uncollectibles & & & \\ \hline \end{tabular}