Required information Problem 9-3A Aging accounts receivable and accounting for b

Question

Required information Problem 9-3A Aging accounts receivable and accounting for bad debts LO P2, P3 The following information applies to the questions displayed below.] Jarden Company has credit sales of $2.700.000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $18,442. Jarden prepares a schedule of its December 31, 2017 accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. December 31, 2017 Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible s 540,88e 216,800 43,280 21,600 4,320 Not yet due 1.10% 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 98 days past due 1.85 6.35 32.00 66.00 Problem 9-3A Part 1 Required: mate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accounts receivable methoo

Explanation / Answer

Calculate estimated uncollectible amount :

Account receivable * percent uncollectible = Estimated uncollectible Not due 540000 * 1.1% = 5940 1 to 30 days 216000 * 1.85% = 3996 31 to 60 days 43200 * 6.35% = 2743.20 61 to 90 days 21600 * 32% = 6912 Over 90 4320 * 66% = 2851.20 Total 22442.40

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