If necessary, record year-end adjusting entries for uncollectible accounts. Prepare the aging schedule for the following accounts receivable: Ageing classification (numbers of due days) Balance sheet as at 31 December Estimate of the percentage of the account that is uncollectible 0-30 days $120,000 1% 31-60 days 80,100 2 % 61-90 days 21,000 11% 91- 120 days 9,000 23% Más de 120 days 15,300 65% Total accounts receivable $245,400
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.
If necessary, record year-end
Prepare the aging schedule for the following
|
Ageing classification (numbers of due days) |
|
Estimate of the percentage of the account that is uncollectible |
|
0-30 days |
$120,000 |
1% |
|
31-60 days |
80,100 |
2 % |
|
61-90 days |
21,000 |
11% |
|
91- 120 days |
9,000 |
23% |
|
Más de 120 days |
15,300 |
65% |
|
Total accounts receivable |
$245,400 |
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