Fabric Co. sells to wholesalers on terms of 2/15, net 30. An analysis of Fabric Co.'s trade receivable balances on December 31, 20x1, revealed the following: Age in days 0-15 16 - 30 31-60 61 - 90 91 - 120 121 - 150 Total receivables accounts Receivable balances b. 9,000 c. 22,600 d. 28,200 180,000 108,000 90,000 72,000 54,000 36,000 540,000 Fabric Co. uses the aging of receivables method. The estimated percentages of collectability based on past experience are shown below: Accounts that are overdue for less than 31 days 97% Accounts that are overdue 31 - 60 days 90% 85% Accounts that are overdue 61-90 days Accounts that are overdue 91 - 120 days 65% Accounts that are overdue for over 120 days 40% The allowance for doubtful accounts has a balance of $18,000 as of January 1, 20x1. Write-offs and recoveries during the year amounted to P6,000 and $3,000, respectively. 27. How much is the doubtful accounts expense for the year? a. 15,600

Fabric Co. sells to wholesalers on terms of 2/15, net 30. An analysis of Fabric Co.'s trade receivable balances on December 31, 20x1, revealed the following: Age in days 0-15 16 - 30 31-60 61 - 90 91 - 120 121 - 150 Total receivables accounts Receivable balances b. 9,000 c. 22,600 d. 28,200 180,000 108,000 90,000 72,000 54,000 36,000 540,000 Fabric Co. uses the aging of receivables method. The estimated percentages of collectability based on past experience are shown below: Accounts that are overdue for less than 31 days 97% Accounts that are overdue 31 - 60 days 90% 85% Accounts that are overdue 61-90 days Accounts that are overdue 91 - 120 days 65% Accounts that are overdue for over 120 days 40% The allowance for doubtful accounts has a balance of $18,000 as of January 1, 20x1. Write-offs and recoveries during the year amounted to P6,000 and $3,000, respectively. 27. How much is the doubtful accounts expense for the year? a. 15,600

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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kk. Subject :- Accounting
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