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The Lake Lucerne Company uses the allowance method of estimating bad debts expense. An aging schedule is prepared in order to calculate the balance in the allowance account. The percentage uncollectible is calculated as followed: 1-30 days= 1.5% 31-60 days= 3.5% 61-90 days= 12% 91-365 days= 70% Calculate the number of days each receivable is outstanding and Complete the Schedule of Accounts Receivable. Both are showed in the images attached for context and data. Make sure to show all work and formulas.

The Lake Lucerne Company uses the allowance method of estimating bad debts expense. An aging schedule is prepared in order to calculate the balance in the allowance account. The percentage uncollectible is calculated as followed: 1-30 days= 1.5% 31-60 days= 3.5% 61-90 days= 12% 91-365 days= 70% Calculate the number of days each receivable is outstanding and Complete the Schedule of Accounts Receivable. Both are showed in the images attached for context and data. Make sure to show all work and formulas.

FINANCIAL ACCOUNTING
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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Background imformation: The Lake Lucerne Company uses the allowance method of estimating bad debts expense. An aging schedule is prepared in order to calculate the balance in the allowance account. The percentage uncollectible is calculated as followed: 1-30 days= 1.5% 31-60 days= 3.5% 61-90 days= 12% 91-365 days= 70% Calculate the number of days each receivable is outstanding and Complete the Schedule of Accounts Receivable. Both are showed in the images attached for context and data. Make sure to show all work and formulas.
The image shows a spreadsheet titled "Schedule of Accounts Receivable" with several columns and rows to track customer balances over time. Below is a detailed breakdown of the spreadsheet: ### Header: - **Columns:** - **C:** Customer Name - **D:** 1-30 Days - **E:** 31-60 Days - **F:** 61-90 Days - **G:** 91-365 Days - **H:** Total Balance ### Customer List: - Bonneville - Chinook - Duwamish - Foss - Nisqually - Worden ### Summary Rows: - Totals (No values entered) - Estimated % uncollectible (No values entered) - Estimated total uncollectible (No values entered) ### Additional Section at Bottom: - **Balances on July 31, 2024** - **Accounts Receivable:** 6,445 - **Allowance for Bad Debts:** - 5 - (5) This spreadsheet is designed to track the age of accounts receivable and assess the allowance for bad debts. The "Schedule of Accounts Receivable" helps in managing credit risks by highlighting overdue accounts, while the bottom section summarizes overall balances and adjustments for potential bad debts.
Transcribed Image Text:The image shows a spreadsheet titled "Schedule of Accounts Receivable" with several columns and rows to track customer balances over time. Below is a detailed breakdown of the spreadsheet: ### Header: - **Columns:** - **C:** Customer Name - **D:** 1-30 Days - **E:** 31-60 Days - **F:** 61-90 Days - **G:** 91-365 Days - **H:** Total Balance ### Customer List: - Bonneville - Chinook - Duwamish - Foss - Nisqually - Worden ### Summary Rows: - Totals (No values entered) - Estimated % uncollectible (No values entered) - Estimated total uncollectible (No values entered) ### Additional Section at Bottom: - **Balances on July 31, 2024** - **Accounts Receivable:** 6,445 - **Allowance for Bad Debts:** - 5 - (5) This spreadsheet is designed to track the age of accounts receivable and assess the allowance for bad debts. The "Schedule of Accounts Receivable" helps in managing credit risks by highlighting overdue accounts, while the bottom section summarizes overall balances and adjustments for potential bad debts.
### Text and Table Transcription for Educational Purposes --- **Table 1: Uncollectible Accounts Percentages** This table outlines the percentage of uncollectible accounts based on the number of days outstanding. | Minimum Days | Maximum Days | % Uncollectible | |--------------|--------------|-----------------| | 1 | 30 | 1.5% | | 31 | 60 | 3.5% | | 61 | 90 | 12.0% | | 91 | 365 | 70.0% | **Note:** Use the table above for the calculations. --- **Table 2: Customer Invoice Data** This table displays data related to customer invoices, including the amount, invoice date, days outstanding, and the corresponding uncollectible percentage. | Customer Name | Amount | Today's Date | Invoice Date | Days Outstanding | Uncollectible % | |---------------|--------|--------------|--------------|------------------|-----------------| | Bonneville | $980 | 7/31/2024 | 5/26/2024 | 66 | | | Chinook | $1,010 | 7/31/2024 | 6/30/2024 | 31 | | | Duwamish | $510 | 7/31/2024 | 7/12/2024 | 19 | | | Foss | $450 | 7/31/2024 | 4/15/2024 | 107 | | | Nisqually | $3,145 | 7/31/2024 | 6/18/2024 | 43 | | | Worden | $350 | 7/31/2024 | 5/10/2024 | 82 | |
Transcribed Image Text:### Text and Table Transcription for Educational Purposes --- **Table 1: Uncollectible Accounts Percentages** This table outlines the percentage of uncollectible accounts based on the number of days outstanding. | Minimum Days | Maximum Days | % Uncollectible | |--------------|--------------|-----------------| | 1 | 30 | 1.5% | | 31 | 60 | 3.5% | | 61 | 90 | 12.0% | | 91 | 365 | 70.0% | **Note:** Use the table above for the calculations. --- **Table 2: Customer Invoice Data** This table displays data related to customer invoices, including the amount, invoice date, days outstanding, and the corresponding uncollectible percentage. | Customer Name | Amount | Today's Date | Invoice Date | Days Outstanding | Uncollectible % | |---------------|--------|--------------|--------------|------------------|-----------------| | Bonneville | $980 | 7/31/2024 | 5/26/2024 | 66 | | | Chinook | $1,010 | 7/31/2024 | 6/30/2024 | 31 | | | Duwamish | $510 | 7/31/2024 | 7/12/2024 | 19 | | | Foss | $450 | 7/31/2024 | 4/15/2024 | 107 | | | Nisqually | $3,145 | 7/31/2024 | 6/18/2024 | 43 | | | Worden | $350 | 7/31/2024 | 5/10/2024 | 82 | |
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