Perry Materials uses the aging method and has completed the following analysis of the accountsreceivable:CustomerOver 90 Total1-30 Days 31-60 Days 61-90 Days DaysBalanceJohnson$4,600$3,200$7,800Hot Pots, Inc.8001,0001,800Potter40,00055040,550Harrison3,6009004,500Marx2,000502,050Younger65,00065,000Merry Maids5,9005,900Acher12.0006,40018,400Totals$127,500$13,750$3,700$1,050$146,000Uncollectible percentage10%20%40%Estimated uncollectibleamount$2,550$1,375$740$420$5,085Required:1. How much will the Uncollectible account expense for the year be?2. What will the final balance in the Allowance account be, after adjusting for uncollectibleaccount expense?

Note: It is assumed that Allowance for uncollectible accounts have a debit balance of $6200 In order…

Answered: Perry Materials uses the aging method…

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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