LUS uni nt Whispering Winds Corp. has accounts receivable of $93,600 at March 31

Question

LUS uni nt Whispering Winds Corp. has accounts receivable of $93,600 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $2,216 cresit balance in Allowance for Doubtfhul Accourts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as shown below 2017 2016 Uncollectible $63,800 $69,450 1-30 days past due 12,200 7,740 31-90 days past due 10,000 2,630 Over 90 days past due -7600 1,140 $93,600 $80,960 29 54 y (a) etermine the Attempts: 0 of 5

Explanation / Answer

Ans. Total Estimated uncollectible $8,890 *Calculation: Age of accounts (a) 2017 balance (b) % uncollectible(c) Est. uncollectible (b*c) Current 63800 2% 1276 1-30 days past due 12200 5% 610 31-90 days past due 10000 29% 2900 Over 90 days past due 7600 54% 4104 Total Estimated Uncollectibles 8890

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