Jarden Company has credit sales of $3,600,000 for year 2017. On December 31, 2017, the company's Allowance forDoubtful Accounts has an unadjusted credit brence of $14,500. Jarden prepares a schedule of its December 31, 2017,accounts receivable by age. On the basis of pust experience, it estimates the percent of receivables in each age categorythat will become uncollectible. This information is summarized here.Expected PercentDecember 31, 2017Accounts Receivable.$830,000254,00086,00038,00012,000AccountsreceivableRequired:1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accounts recemethod.XNot due:1 to 3031 to 60:61 to 90:Over 90:Estimated balance of allowance for uncollectiblesxXAge ofAccounts ReceivableNot yet due1 to 30 days past due31 to 60 days past due61 to 90 days past dueOver 90 days past dueXXPercent uncollectible(#.##%)#Uncollectible1.25%2.006.5032.7568.00Estimateduncollectible

Allowance for uncollectible accounts is a contra-asset accountIt is shown on the balance sheet…

Jarden Company has credit sales of $3,600,000 for year 2017. On December 31, 2017, the company Doubtful Accounts has an unadjusted credit bronce of $14,500. Jarden prepares a schedule of its December 31, 2 accounts receivable by age. On the basis of pust experience, it estimates the percent of receivables in each age c that will become uncollectible. This information is summarized here. fue: December 31, 2017 Accounts Receivable $830,000 254,000 86,000 38,000 12,000 Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Accounts receivable uired: timate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accou mod. Expected Percent Uncollectible 1.25% 2.00 6.50 Percent uncollectible (#.##%) 32.75 68.00 Estimated uncollectible

Jarden Company has credit sales of $3,600,000 for year 2017. On December 31, 2017, the company Doubtful Accounts has an unadjusted credit bronce of $14,500. Jarden prepares a schedule of its December 31, 2 accounts receivable by age. On the basis of pust experience, it estimates the percent of receivables in each age c that will become uncollectible. This information is summarized here. fue: December 31, 2017 Accounts Receivable $830,000 254,000 86,000 38,000 12,000 Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Accounts receivable uired: timate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accou mod. Expected Percent Uncollectible 1.25% 2.00 6.50 Percent uncollectible (#.##%) 32.75 68.00 Estimated uncollectible

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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