An aging analysis of Marx Limited's accounts receivable at March 31, 2024 and 2023, showed the following: Number of Days Outstanding 0-30 days 31-60 days 61-90 days Over 90 days Total 1. Accounts Receivable. 2. 2024 2023 $420,000 $379,000 258,000 127,000 132,000 157,000 246,000 $871,000 $909,000 Additional information: 61,000 Estimated Percentage Uncollectible 1% 8% 13% 20% At March 31, 2023, the unadjusted balance in Allowance for Expected Credit Losses was $6,700. In 2024, $98,000 of accounts were written off as uncollectible and $5,300 of accounts previously written off were recovered.
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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