Daley Company estimates uncollectible accounts the following aging of receivable
ID: 2417947 • Letter: D
Question
Daley Company estimates uncollectible accounts the following aging of receivables analysis using the allowance method at December 31. I1 prepared Days Past Due Accounts receivable Percent uncollectible $ 660,000 414,000 108,000 54,000 36,000 48,000 1% 2% 5% 7% 10% a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method Receivable ollectible(%) Not due 1 to 30: 31 to 60 61 to 90 Over 90 Estimated balance of allowance for uncollectiblesExplanation / Answer
Accounts Receivable
Percent Uncollectable (%)
Amount
Not Due
414,000
1
4,140
1 to 30:
108,000
2
2,160
31 to 60:
54,000
5
2,700
61 to 90:
36,000
7
2,520
Over 90:
48,000
10
4,800
Estimated balance of allowance for uncollectibles
16,320
Credit
Unadjusted balance $5,400 Credit
Estimate balance $16,320 Credit
Required Balance $10,920 Credit
Unadjusted balance $1,900 Debit
Estimate balance $16,320 Credit
Required Balance $14,420 Credit
Date
General Journal
Debit
Credit
31-Dec
Bad bebts Expenses
10,920
Allowance for doubtful accounts
10,920
31-Dec
Bad bebts Expenses
14,420
Allowance for doubtful accounts
14,420
Accounts Receivable
Percent Uncollectable (%)
Amount
Not Due
414,000
1
4,140
1 to 30:
108,000
2
2,160
31 to 60:
54,000
5
2,700
61 to 90:
36,000
7
2,520
Over 90:
48,000
10
4,800
Estimated balance of allowance for uncollectibles
16,320
Credit
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