Artis, Inc. uses the aging of accounts receivable method for estimating uncollec

Question

Artis, Inc. uses the aging of accounts receivable method for estimating uncollectible accounts. As of October 31, total Accounts Receivable was $17,800 of which $8,400 was 0 - 30 days old; $5,900 was 31 - 60 days old; and the remainder was over 60 days old. Artis estimates 1% of accounts 0 - 30 days old will be uncollectible; 5% of accounts 31 - 60 days old will be uncollectible; and 15% of accounts over 60 days old will be uncollectible. How much is the adjustment for uncollectible accounts assuming the Allowance for Doubtful Accounts has a $610 credit balance

Explanation / Answer

You can reach me over comment box if you have any doubts. Please rate this answer

Amount % of uncollectibe Uncollectible amount Less than 30 days $ 8,400 1% $                                    84 31-60 days $ 5,900 5% $                                  295 More than 60 days $ 3,500 15% $                                  525 Allowance for doubtful accounts ending balance $                                  904

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.