Prepare an aging schedule to determine the total estimated uncollectibles at March 31,2018 (a)Prepare an aging schedule to determine the total estimated uncollectibles at March 31, 2018.Accounts ReceivableCurrent1-30 days past due31-90 days past dueOver 90 days past due$Amount%$$Estimated Uncollectible Benton Corporation has accounts receivable of $94,300 at March 31, 2018. An analysis of the accounts shows these amounts.Month of SaleMarch (current)February (1-30 days past due)December and January (31-90 days past due)(over 90 days past due)Age of AccountsCurrent1-30 days past due31-90 days past dueOver 90 days past dueEstimated PercentageUncollectible2%6%30%Balance, March 3150%2018$65,20011,50010,8006,800Credit terms are 2/10, n/30. At March 31, 2018, there is an unadjusted $2,300 credit balance in Allowance for Doubtful Accounts.The company uses the percentage of receivables by age category for estimating uncollectible accounts Benton's estimates ofbad debts are as shown below.$94,3002017$75,9008,0002,3001,100$87,300

Allowance for doubtful accounts is an estimate for the accounts receivables that might not be…

Answered: Prepare an aging schedule to determine…

Prepare an aging schedule to determine the total estimated uncollectibles at March 31, 2018. Accounts Receivable Current EA Amount % Estimated Uncollectib

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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Concept explainers

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.

Question

Prepare an aging schedule to determine the total estimated uncollectibles at March 31,2018

Benton Corporation has accounts receivable of $94,300 at March 31, 2018. An analysis of the accounts shows these amounts.
Month of Sale
March (current)
February (1-30 days past due)
December and January (31-90 days past due)
(over 90 days past due)
Age of Accounts
Current
1-30 days past due
31-90 days past due
Over 90 days past due
Estimated Percentage
Uncollectible
2%
6%
30%
Balance, March 31
50%
2018
$65,200
11,500
10,800
6,800
Credit terms are 2/10, n/30. At March 31, 2018, there is an unadjusted $2,300 credit balance in Allowance for Doubtful Accounts.
The company uses the percentage of receivables by age category for estimating uncollectible accounts Benton's estimates of
bad debts are as shown below.
$94,300
2017
$75,900
8,000
2,300
1,100
$87,300

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