a. Calculate bad debt On December 31, after many attempts at collecting the outstanding balance of Copper Gallery, the controller decided to write off that balance. Aylmer caleulates bad debt on trade receivables only, not on project receivables. Bad debt is estimated to be: 0-30 days 31 – 60 days 5% 61 – 90 days 7.5% 91 – 120 days 10% Over 120 days 15% 1%
a. Calculate bad debt On December 31, after many attempts at collecting the outstanding balance of Copper Gallery, the controller decided to write off that balance. Aylmer caleulates bad debt on trade receivables only, not on project receivables. Bad debt is estimated to be: 0-30 days 31 – 60 days 5% 61 – 90 days 7.5% 91 – 120 days 10% Over 120 days 15% 1%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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100%
Transcribed Image Text:Total Due
0-30 Days
31-60 days 61-90 days 91-120 days Over 120
Customer Name
4210119 Ont Ltd
43rd Street Place
261,181
155,894
50,199
50,094
4,994
6,625
6,494
131
6 Star Services
65,675
31,310
30,699
3,666
9900 International Corp
A1 Distributions
Aylmer Enterprises
Booktime Services
Воx Tор Inc
Briar Forest Corp
Cavhill Industries
Colborne Corp
Copper Gallery
Dairy Ashford Corp
Demilo Inc
Dustin Enterprises
Greenway Place
Grosvenor Limited
Houston Consultants
Jesse Blackstone
Joseph Company
Lawrence Brothers
Mapleton Express
OKC Limited
Oxford Distributing
Paper Brands
Plaid Corp
Quality Logistics
TC Jester
Wellington Limited
Westella Drive LTD
Woodplank Inc.
Yellow Street Ltd
Zephyr Limited
140,792
90,981
49,811
130,734
65,944
62,902
944
944
137,818
134,586
3,232
99,797
99,643
154
49,049
13,031
13,031
13,031
9,956
2,942
1,443
1,499
122,223
61,999
60,113
111
1,313
1,313
12,036
12,036
16,499
16,499
83,336
36,785
39,941
6,610
190,811
64,452
64,161
60,644
1,554
104,873
71,548
31,661
1,664
42,877
35,844
7,033
48,464
1,319
10,699
36,446
22,680
9,846
9,846
1,494
1,494
101,407
31,599
36,510
32,649
649
58,561
18,846
19,844
19,460
411
19,048
18,936
112
23,376
9,856
9,856
3,664
20,535
9,884
10,651
105,790
12,636
9,664
36,944
46,546
38,631
12,500
12,500
12,500
131
1,000
24,565
2,131
2,236
2,066
1,691
16,441
100,665
49,666
49,666
1,333
138,144
65,478
72,666
14,410
6,944
6,411
1,055
1,065
1,065
1,328
664
664
636
318
318
TOTAL
2,187,886
1,138,389
662,712
283,942
70,747
32,096
Transcribed Image Text:a. Calculate bad debt
On December 31, after many attempts at collecting the outstanding balance of Copper Gallery,
the controller decided to write off that balance.
Aylmer calculates bad debt on trade receivables only, not on project receivables. Bad debt is
estimated to be:
0-30 days
31 – 60 days 5%
61 – 90 days 7.5%
91 – 120 days 10%
Over 120 days 15%
1%
In the excel spreadsheet, see the tab labelled “Trade Accounts Receivable Detail" to perform any
necessary calculations.
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