Required information The following information applies to the questions displaye
ID: 2518930 • Letter: R
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Required information The following information applies to the questions displayed below Jarden Company has credit sales of $2,900,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $18,376. 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 Expected Percent Age of Accounts Receivable Uncollectible $580,000 Not yet due 1 to 30 days past 232,000 due 31 to 60 days past due 61 to 90 days past due over 90 days pas64.00 due 1.60 6.10 30.75 46,400 23,200 4,640Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Dec 31 ' 2017 Accounts receivable Expected % Uncollectible Allowance for doubtful accounts 580,000.00 0.85% 4,930.00 232,000.00 1.60% 3,712.00 46,400.00 6.10% 2,830.40 23,200.00 30.75% 7,134.00 4,640.00 64% 2,969.60 21,576.00 Existing balance in Allowance for doubtful accounts 18,376.00 Balance required 21,576.00 More allowance required 3,200.00 Dr Cr Bad Debt Expense Dr 3,200.00 To Allowance for doubtful accounts 3,200.00
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