60.1K

Verified Solution

Link Copied!

At the end of Year 5, your consulting firm has been hired by a local service firm to help forecast future uncollect ble accounts. You ask the service firm to provide several yeers of data on the percentage of uncollectible sccounts based on the age categarles of occounts recelvable at the beginning of the year. With these bistorical percentages, you estimate a trend line (dashed ine) to predict the percentage of uncoliect ble accounts for Yoar 6 , the upcoming yeac. Graphs were provided to management from your analysis of each of the three age categories, as wel as balances of accounts recolvable by age category at the end of Year 5 as follows: Percentage of Uncollectible Accounts: Required: 1. Which age categories predicts the fowest percentege of uncollectible accounts for Year 6 ? 2. Which age categories predicts the highest percentage of uncollectible accounts for Year 6 ? 3. What is the dollar amount of accounts recelvable that are 1-30 days past dive at the end of yoar 5 (bottom graph)? 4. Calculate the tota' amount ol estimated uncoliectible accounts for Year 6 (Hint Use all three age categories)? 5. Assume the balance of Allowance for Uncolectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prep the adjusting entry,at the end of Year 5. 6. Determine the amount of net accounts receivable the company would report at the end of Year 5. Complete this question by entering your answers in the tabs below. Which age cotegorles predicts the lowest percertsge of uncolectible accounts for Yes of

Answer & Explanation Solved by verified expert

See Answer