Estimating Allowance for Doubtful Accounts Thunderwood Industries has a past his
ID: 2423065 • Letter: E
Question
Estimating Allowance for Doubtful Accounts
Thunderwood Industries has a past history of uncollectible accounts, as shown below.
Age Class Percent Uncollectible
Not past due 2%
1-30 days past due 6%
31- 60 days past due 12%
61 - 90 days past due 30%
over 90 days past due 75%
Estimate the allowance for doubtful accounts, based on the aging of receivable information provided in the chart below
Thunderwood Industries
Estimate the Allowance for Doubtful Accounts
Balance Not Past Due Days Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due Over 90
Total receivables 833,500 488,000 166,500 96,000 43,000 40,000
Percentage uncollectible 2%_____ 6%____ 12%_______ 30%________ 75% _________
Allowance for doubtful accounts ________ _________ ___________ _______________ ________________ ____________________
Explanation / Answer
Statement showing Estimating the allowance for doubtful accounts Age Class Balance Not Past Due Days Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due Over 90 Total receivables 833,500.00 488,000.00 166,500.00 96,000.00 43,000.00 40,000.00 Percentage uncollectible 2% 6% 12% 30% 75% Allowance for doubtful accounts 9,760.00 9,990.00 11,520.00 12,900.00 30,000.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.