Estimating Allowance for Doubtful Accounts Kirchhoff Industries has a past histo

Question

Estimating Allowance for Doubtful Accounts Kirchhoff 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 20 61-90 days past due 30 Over 90 days past due 45 Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below. Kirchhoff Industries Aging-of-Receivables Schedule Customer Balance Not Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due Over 90 Days Past Due Subtotals 555,500 327,700 122,200 50,000 27,800 27,800 Conover Industries 13,300 13,300 Keystone Company 20,300 20,300 Moxie Creek Inc. 9,000 9,000 Rainbow Company 8,100 8,100 Swanson Company 26,200 26,200 Totals 632,400 353,900 130,300 59,000 48,100 41,100 Percentage uncollectible 2% 6% 20% 30% 45% Allowance for Doubtful Accounts Feedback

Explanation / Answer

Balance Not past due 1-30 days 31-60 days 61-90 days Over 90 days Total 632400 353900 130300 59000 48100 41100 Percentage uncollectible 2% 6% 20% 30% 45% Allowance for doubtful accounts 59621 7078 7818 11800 14430 18495

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