Asked by John
Aging Accounts Receivable:
Madariaga Campany's accounts receivable reveal the following balances:
current 840,000
1-30 days past due 405,000
31-60 days past due 95,000
61-90 days past due 60,000
91-120 days past due 11,000
The credit balance in Allowance for Bad debts is now 38,000. After a thorough analysis of its collection history, the company estimates that the following percentages of receivables will eventually prove uncollectible:
current 0.5%
1-30 days past due 3.5%
31-60 days past due 15.0%
61-90 days past due 55.0%
91-120 days past due 94.0%
PREPARE AN AGING SCHEDULE FOR THE ACCOUNTS RECEIVABLE, AND GIVE THE JOURNAL ENTRY FOR RECORDING THE NECESSARY CHANGE IN THE ALLOWANCE FOR BAD DEBTS ACCOUNT.
Madariaga Campany's accounts receivable reveal the following balances:
current 840,000
1-30 days past due 405,000
31-60 days past due 95,000
61-90 days past due 60,000
91-120 days past due 11,000
The credit balance in Allowance for Bad debts is now 38,000. After a thorough analysis of its collection history, the company estimates that the following percentages of receivables will eventually prove uncollectible:
current 0.5%
1-30 days past due 3.5%
31-60 days past due 15.0%
61-90 days past due 55.0%
91-120 days past due 94.0%
PREPARE AN AGING SCHEDULE FOR THE ACCOUNTS RECEIVABLE, AND GIVE THE JOURNAL ENTRY FOR RECORDING THE NECESSARY CHANGE IN THE ALLOWANCE FOR BAD DEBTS ACCOUNT.