NEXT Exercise 8-5 (Part Level Submission) Ivanhoe Company has accounts receivabl

Question

NEXT Exercise 8-5 (Part Level Submission) Ivanhoe Company has accounts receivable of $92,700 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $2,196 credit balance Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as shown below. Balance, March 31 Estimated Percentage Age of Accounts Current 1-30 days past due 4,007,600 31-90 days past due 10,8002,580 Over 90 days past due 7,5001,120 20172016 Uncollectible $60,300 $67,720 2% 32 $92,700 $79,020 (a) Determine the total estimated uncollectibles. The total estimated uncollectibles HOW LIST OF ACCOUNTS EO: SIMILAR EXERCISE EO: APPLIED SKILLS LINK TO TEXT 10,2 MacBook Pro F10 2 9 0

Explanation / Answer

a) Age of accounts Amount $ (a) Estimated % uncollectible (b) Uncollectible $ (c=a*b) Current 60300 2% 1206 1-30 days past due 14100 5% 705 31-90 days past due 10800 32% 3456 over 90 days past due 7500 55% 4125 Total 92700 9492 Total estimated uncolletible = $9492

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