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Estimating Allowance for Doubtful Accounts Kirchhoff Industries has a past history of uncollectible accounts, as...

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Accounting

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 733,400 432,700 161,300 66,000 36,700 36,700
Conover Industries 14,700 14,700
Keystone Company 22,000 22,000
Moxie Creek Inc. 5,300 5,300
Rainbow Company 8,300 8,300
Swanson Company 24,300 24,300
Totals 808,000 457,000 169,600 71,300 58,700 51,400
Percentage uncollectible 2% 6% 20% 30% 45%
Allowance for Doubtful Accounts

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