90.2K

Verified Solution

Link Copied!

Jarden Company has credit sales of $3,100,000 for year 2017. On December 31, 2017, the companys Allowance for Doubtful Accounts has an unadjusted credit balance of $20,055. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here.

December 31, 2017 Accounts Receivable		Age of Accounts Receivable	Expected Percent Uncollectible
$	620,000	Not yet due	0.95	%
	248,000	1 to 30 days past due	1.70
	49,600	31 to 60 days past due	6.20
	24,800	61 to 90 days past due	31.25
	4,960	Over 90 days past due	65.00

Required: 1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accounts receivable method.

The following information applies to the questions displayed below. Jarden Company has credit sales of $3,100,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $20,055. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here December 31, 2817 Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible .95% S 620, 000 Not yet due 248, e00 49, 600 24, 800 1 to 38 days past due 31 to 60 days past due 61 to 90 days past due Over 98 days past due 1.78 6.20 31.25 65.88 4,960 1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accounts receivable method. Uncollectible Not due 1 to 30: 31 to 60: 61 to 90 Over 90 Estimated balance of allowance for uncollectibles

Answer & Explanation Solved by verified expert

See Answer