Exercise 8-5 (Part Level Submission) Stine Company has accounts receivable of $9

Question

Exercise 8-5 (Part Level Submission) Stine Company has accounts receivable of $99,100 at March 31, 2014. An analysis of the accounts shows these amounts. Balance, March 31 2014 $66,400 th of Sale 2013 March February December and January November and October $67,700 8,600 3,700 1,600 14,600 10,500 599,100 Credit terms are 2/10, n/30. At March 31, 2014, there is a $2,200 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's s estimates of bad debts are as shown below. Perce of Accounts Uncollectible Current 1-30 days past due 31-90 days past due Over 90 days past due 2% 29 51 (a) Determine the total estimated uncollectibles. The total estimated uncollectibles

Explanation / Answer

Total estimated uncollectible= 6921

Age group (in days) Amount Uncollectible % Uncollectible allowance b=a*437000 c d=b*c Current 66400 2% 1328 1-30 14600 5% 730 31-90 10500 29% 3045 >90 7600 51% 3876 Total allowance closing balance 99100 6921

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