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3 During a recent year, Roseys Roses had sales on account of $345,000, collections of $337,000, write-offs of $3,700, a beginning balance in accounts receivable of $37,000, and a beginning balance in the allowance for uncollectible accounts of $1,200. At year-end, $34,000 of accounts receivable were current, $4,900 were 030 days past due, $1,500 were 3160 days past due, $500 were 6190 days past due, and $400 were over 90 days past due. The company believes 1.0 percent of sales will not be collected. They also have experience suggesting that 3 percent of all current receivables, 5 percent of receivables 030 days past due, 15 percent of receivables 3160 days past due, 20 percent of receivables 6190 days past due, and 40 percent of receivables over 90 days past due will not be collected. Use the third worksheet of the workbook to answer this problem:

a. Complete an allowance for uncollectible accounts analysis using the percentage of sales method.

Please show formulas.

b. Complete an allowance for uncollectible accounts analysis using the aging method.

D E A 1 Rosey's Roses 2 Allowance for Uncollectible Accounts Current 0-30 Days Past 31 50 Days 61.90 Days Due Past Due Past Due > 90 Days Pas Due Total Aging Method Information 41 5. Amount 6 Past experience ratio 7 8 Past experience ratio for of sales method 10 Facts 11 Acounts receivable balance (hegl 12 Sales on account 13 Collection on account 14 We off of accounts receivable 15 Accounts receivable balance (end) 16 17 Percentage of Sales Method 18 Allowance for uncollectible accounts (bee) 29 write offs of accounts receivable 20 Uncollectible accounts expense 31 Allowance for Uncollectible accounts (end) 32 23 Aging Method 4 Allowance for uncollectible accounts (bes) 5 Write-offs al accounts receivable 6 Uncollectible accounts expense 7 Allowance for uncollectible accounts end) B

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