a. Calculate the total estimated bad debts based on the above information. Wohoo Publishers uses the allowance method to estimate uncollectible accounts receivables. Thecompany produced the following aging of the accounts receivable at year-end (Y in thousands).Accounts receivable% uncollectibleEstimated bad debtsTotal200,0000-30 days77,0002%31-60 days46,0005%61-90 days 91-120 days39,0006%23,00010%Over 120days15,00025%

AGING METHOD The Aging method is used to estimate the total amount of uncollectible accounts…

Answered: Calculate the total estimated bad debts…

Business

Accounting

Calculate the total estimated bad debts based on the above information.

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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Question

a. Calculate the total estimated bad debts based on the above information.

Wohoo Publishers uses the allowance method to estimate uncollectible accounts receivables. The
company produced the following aging of the accounts receivable at year-end (Y in thousands).
Accounts receivable
% uncollectible
Estimated bad debts
Total
200,000
0-30 days
77,000
2%
31-60 days
46,000
5%
61-90 days 91-120 days
39,000
6%
23,000
10%
Over 120
days
15,000
25%

Definition Definition Receivable amount that a company is owed, but did not receive, and which may not be receivable in future.

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