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HURON COMPANY-3 The uncollectible accounts receivable rate in the sector where the business operates is high. As of December 31, 2019, the balance of the Accounts Receivable of the business is $1,250,000. Of these receivables, $850,000 are not yet due. However, receivables worth $400,000 have past due. The aging of these past due receivables has been done, and according to this aging, the collectibility probabilities anticipated by the business are presented in the table below.

Days Past Due - Amount $ - Collectibility Probability 1-15 days 180,000 0.98 16-30 days 84,000 0.95 31-60 days 47,000 0.80 61-90 days 35,000 0.70 91-120 days 15,000 0.40 121-240 days 20,000 0.30 More than 241 days 19,000 0.01 Total 400,000

Requirements:

1)The company will implement a policy for allowance for doubtful accounts for the first time at the end of this year. What is the amount of doubtful accounts allowance that needs to be set aside? How will the receivables and allowances be reported in the financial statements? 2)The company has also maintained a policy for allowance for doubtful accounts in previous years, and as of December 31, 2019, the company's existing Allowance for Doubtful Accounts account shows a balance of $22,800. What is the amount of doubtful accounts allowance that needs to be set aside? How will the receivables and allowances be reported in the financial statements? 3)The company has maintained a policy for allowance for doubtful accounts in previous years, and as of December 31, 2019, the company's existing Allowance for Doubtful Accounts account shows a balance of $90,350. What is the amount of doubtful accounts allowance that needs to be set aside? How will the receivables and allowances be reported in the financial statements?

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