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ALLOWANCE FOR UNCOLLECTIBLE AGING SCHEDULE UNCOLLECTIBLE AMOUNT 1-30 days $ 2% $1,309.50 31-60 days $ 4% $209.36 over 60 days $ 9% $178.56 Total Uncollectible Balance $1,697.42 Which amount would be recorded in accounts receivable at over 60 days? O $65,475 O $5,234 O $1,984 ACCOUNT RECEIVABLE AMOUNT $72,694

ALLOWANCE FOR UNCOLLECTIBLE AGING SCHEDULE UNCOLLECTIBLE AMOUNT 1-30 days $ 2% $1,309.50 31-60 days $ 4% $209.36 over 60 days $ 9% $178.56 Total Uncollectible Balance $1,697.42 Which amount would be recorded in accounts receivable at over 60 days? O $65,475 O $5,234 O $1,984 ACCOUNT RECEIVABLE AMOUNT $72,694

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Understanding Accounts Receivable Aging Schedule** In this section, we are looking at an Accounts Receivable Aging Schedule. An Aging Schedule is used by accountants to manage and monitor account receivables. This ensures effective tracking and has a critical role in predicting and preparing for uncollectible amounts. Below is the detailed breakdown of the image contents, including a table and an accompanying multiple-choice question. ### Table: Accounts Receivable Aging Schedule | AGING SCHEDULE | ACCOUNT RECEIVABLE AMOUNT | ALLOWANCE FOR UNCOLLECTIBLE | UNCOLLECTIBLE AMOUNT | |----------------|----------------------------|-----------------------------|----------------------| | 1-30 days | | 2% | $1,309.50 | | 31-60 days | | 4% | $209.36 | | over 60 days | | 9% | $178.56 | **Total Uncollectible Balance: $1,697.42** ### Explanation of Columns: 1. **Aging Schedule:** This categorizes the receivables based on the age of the invoice. - 1-30 days - 31-60 days - over 60 days 2. **Account Receivable Amount:** The total amount due from customers. - The cells for the first two categories (1-30 days, 31-60 days) are empty and not specified in this table. - For "over 60 days" there is an empty highlighted cell indicating where the amount in this category should be calculated. 3. **Allowance for Uncollectible:** Percentage estimated to be uncollectible. - 2% for 1-30 days - 4% for 31-60 days - 9% for over 60 days 4. **Uncollectible Amount:** The anticipated uncollectible amounts calculated using the allowance percentages. ### Multiple-Choice Question: The table is followed by a multiple-choice question: - **Question:** Which amount would be recorded in accounts receivable at over 60 days? - $65,475 - $5,234 - $1,984 - $72,694 To determine the correct answer, one would need to reverse-calculate the uncollectible amount for the category "over 60 days" using the 9% allowance rate provided. This involves
Transcribed Image Text:**Understanding Accounts Receivable Aging Schedule** In this section, we are looking at an Accounts Receivable Aging Schedule. An Aging Schedule is used by accountants to manage and monitor account receivables. This ensures effective tracking and has a critical role in predicting and preparing for uncollectible amounts. Below is the detailed breakdown of the image contents, including a table and an accompanying multiple-choice question. ### Table: Accounts Receivable Aging Schedule | AGING SCHEDULE | ACCOUNT RECEIVABLE AMOUNT | ALLOWANCE FOR UNCOLLECTIBLE | UNCOLLECTIBLE AMOUNT | |----------------|----------------------------|-----------------------------|----------------------| | 1-30 days | | 2% | $1,309.50 | | 31-60 days | | 4% | $209.36 | | over 60 days | | 9% | $178.56 | **Total Uncollectible Balance: $1,697.42** ### Explanation of Columns: 1. **Aging Schedule:** This categorizes the receivables based on the age of the invoice. - 1-30 days - 31-60 days - over 60 days 2. **Account Receivable Amount:** The total amount due from customers. - The cells for the first two categories (1-30 days, 31-60 days) are empty and not specified in this table. - For "over 60 days" there is an empty highlighted cell indicating where the amount in this category should be calculated. 3. **Allowance for Uncollectible:** Percentage estimated to be uncollectible. - 2% for 1-30 days - 4% for 31-60 days - 9% for over 60 days 4. **Uncollectible Amount:** The anticipated uncollectible amounts calculated using the allowance percentages. ### Multiple-Choice Question: The table is followed by a multiple-choice question: - **Question:** Which amount would be recorded in accounts receivable at over 60 days? - $65,475 - $5,234 - $1,984 - $72,694 To determine the correct answer, one would need to reverse-calculate the uncollectible amount for the category "over 60 days" using the 9% allowance rate provided. This involves
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