Help Save & E Che Required information Problem 9-3A Aging accounts receivable an

ID: 2556086 • Letter: H

Question

Help Save & E Che Required information Problem 9-3A Aging accounts receivable and accounting for bad debts LO P2, P3 The following information applies to the questions displayed below Jarden Company has credit sales of $2.300,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtf ul Accounts has an unadjusted credit balance of $11,902 Jarden prepares a schedule of its December 31, 2017 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 Age of Accounts Receivable Expected Percent counts Receivable Uncollectible 0.75% 1.se 6.00 30.25 63.00 s 460,00e Not yet due 184,000 36,880 18,400 3,680 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 98 days past due Problem 9-3A Part 1 Required: 1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31.2017, using the aging of accounts receivable arch

Explanation / Answer

Solution:

Age of Accounts Receivable

Accounts Receivable

Percent Uncollectible

Estimated Uncollectible

Not yet due

$460,000

0.75%

$3,450

1 to 30

$184,000

1.50%

$2,760

31 to 60

$36,800

$2,208

61 to 90

$18,400

30.25%

$5,566

Over 90

$3,680*

63%

$2,318

Estimated balance of Allowance for Uncollectible

$16,302

Credit

*Note --- The figure is not clear in the question. If it is 3600 the answer will be different. Pls confirm so that I will provide you correct answer.

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