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 $15,500. Jarden prepares a schedule of Its December 31 accounts receivable by age. Accounts Receivable $ 900,000 360,000 72,000 36,000 14,400 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 Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. Accounts Receivable Percent Uncollectible (#.## %) Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles = = Expected Percent Uncollectible 1.30% 2.05 6.55 33.00 69.00 = Estimated Uncollectible
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 $15,500. Jarden prepares a schedule of Its December 31 accounts receivable by age. Accounts Receivable $ 900,000 360,000 72,000 36,000 14,400 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 Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. Accounts Receivable Percent Uncollectible (#.## %) Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles = = Expected Percent Uncollectible 1.30% 2.05 6.55 33.00 69.00 = Estimated Uncollectible
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Can I please get help with this question along with a quick explaination to help me understand?
![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 $15,500.
Jarden prepares a schedule of its December 31 accounts receivable by age.
Accounts
Receivable
$ 900,000
360,000
72,000
36,000
14,400
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
Required:
1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable.
Percent
Uncollectible (#.## %)
Not due:
1 to 30:
31 to 60:
61 to 90:
Over 90:
Estimated balance of allowance for uncollectibles
x
=
Expected Percent
Uncollectible
1.30%
2.05
6.55
=
33.00
69.00
Estimated
Uncollectible](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b226df5-5ab6-44cb-a944-1c5e9ef58384%2Fbb2f0a7b-0e17-47d1-a68b-edd9082ca91f%2Fzp3d7e_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $15,500.
Jarden prepares a schedule of its December 31 accounts receivable by age.
Accounts
Receivable
$ 900,000
360,000
72,000
36,000
14,400
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
Required:
1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable.
Percent
Uncollectible (#.## %)
Not due:
1 to 30:
31 to 60:
61 to 90:
Over 90:
Estimated balance of allowance for uncollectibles
x
=
Expected Percent
Uncollectible
1.30%
2.05
6.55
=
33.00
69.00
Estimated
Uncollectible
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