The following information pertains to Eire Co.’s accounts receivable at December 31, Year 2: Days Estimated Outstanding Amount % Uncollectible 0 - 60 $240,000 1% 61 - 120 180,000 2% Over 120 200,000 6% $620,000 During Year 2, Eire wrote off $14,000 in receivables and recovered $8,000 that was written off in prior years. Its December 31, Year 1, allowance for credit losses was $44,000. Under the aging method, what amount of allowance for credit losses should Eire report at December 31, Year 2?
The following information pertains to Eire Co.’s accounts receivable at December 31, Year 2: Days Estimated Outstanding Amount % Uncollectible 0 - 60 $240,000 1% 61 - 120 180,000 2% Over 120 200,000 6% $620,000 During Year 2, Eire wrote off $14,000 in receivables and recovered $8,000 that was written off in prior years. Its December 31, Year 1, allowance for credit losses was $44,000. Under the aging method, what amount of allowance for credit losses should Eire report at December 31, Year 2?
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 9P
Related questions
Question
The following information pertains to Eire Co.’s
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Days
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Estimated
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Outstanding
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Amount
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% Uncollectible
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0 - 60
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$240,000
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1%
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61 - 120
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180,000
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2%
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Over 120
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200,000
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6%
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|
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|||
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$620,000
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During Year 2, Eire wrote off $14,000 in receivables and recovered $8,000 that was written off in prior years. Its December 31, Year 1, allowance for credit losses was $44,000. Under the aging method, what amount of allowance for credit losses should Eire report at December 31, Year 2?
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