Required information [The following information applies to the questions displayed below] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $1 Jarden prepares a schedule of its December 31 accounts receivable by age. Expected Percent Accounts Receivable $820,000 328,000 65.600 32,800 13.120 Age of Accounts Receivable Not yet dan 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 30 days past due Uncollectible 3.20 1.95 6.45 32.50 67.00
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.
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Required information
[The following information applies to the questions displayed below.]
On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $15,000.
Jarden prepares a schedule of its December 31 accounts receivable by age.
Expected Percent
Accounts
Receivable
$820,000
328,000
65.600
32,800
13.120
Age of Accounts Receivable
Not yet dan
1 to 30 days past due
31 to 60 days past due
61 to 90 days past due
Over 90 days past due
Required:
1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable.
Accounts
Receivable
W
Not due:
1 to 30
31 to 60
61 to 90
Over 90:
Estimated balance of allowance for uncollectibles
M
M
Percent
Uncollectible (8.8%)
.
Uncollectible
1.20
1.95
6.45
32.50
67.00
.
Estimated
Uncollectible
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