The assessment of amount of the allowance for doubtful accounts receivables. Given information: Data for Y2 Sales for the Y2 are $370, 00,000. Total receivables for Y2 are $67,000,000. In 0-30 days ageing category receivables are $15,000,000 with uncollectible 4%. In 31-60 days ageing category receivables are $27,000,000 with uncollectible 10%. In 61-90 days ageing category receivables are $10,000,000 with uncollectible 30%. In 91-120 days ageing category receivables are $5,000,000 with uncollectible 40%. In Over 120 days ageing category receivables are $10,000,000 with uncollectible 80%. Data for Y1 Sales for the Y2 are $420, 00,000. Total receivables for Y1 are $48,000,000. In 0-30 days ageing category receivables are $30,000,000 with uncollectible 1%. In 31-60 days ageing category receivables are $8,000,000 with uncollectible 7.5%. In 61-90 days ageing category receivables are $4,000,000 with uncollectible 20%. In 91-120 days ageing category receivables are $2,000,000 with uncollectible 40%. In Over 120 days ageing category receivables are $4,000,000 with uncollectible 45%.
The assessment of amount of the allowance for doubtful accounts receivables. Given information: Data for Y2 Sales for the Y2 are $370, 00,000. Total receivables for Y2 are $67,000,000. In 0-30 days ageing category receivables are $15,000,000 with uncollectible 4%. In 31-60 days ageing category receivables are $27,000,000 with uncollectible 10%. In 61-90 days ageing category receivables are $10,000,000 with uncollectible 30%. In 91-120 days ageing category receivables are $5,000,000 with uncollectible 40%. In Over 120 days ageing category receivables are $10,000,000 with uncollectible 80%. Data for Y1 Sales for the Y2 are $420, 00,000. Total receivables for Y1 are $48,000,000. In 0-30 days ageing category receivables are $30,000,000 with uncollectible 1%. In 31-60 days ageing category receivables are $8,000,000 with uncollectible 7.5%. In 61-90 days ageing category receivables are $4,000,000 with uncollectible 20%. In 91-120 days ageing category receivables are $2,000,000 with uncollectible 40%. In Over 120 days ageing category receivables are $4,000,000 with uncollectible 45%.
Solution Summary: The author explains the allowance for doubtful accounts receivables, which is set aside for the bad debts expense expected to incur on account of sales made during the year.
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
Chapter 9, Problem 1JC
To determine
The assessment of amount of the allowance for doubtful accounts receivables.
Given information:
Data for Y2
Sales for the Y2 are $370, 00,000.
Total receivables for Y2 are $67,000,000.
In 0-30 days ageing category receivables are $15,000,000 with uncollectible 4%.
In 31-60 days ageing category receivables are $27,000,000 with uncollectible 10%.
In 61-90 days ageing category receivables are $10,000,000 with uncollectible 30%.
In 91-120 days ageing category receivables are $5,000,000 with uncollectible 40%.
In Over 120 days ageing category receivables are $10,000,000 with uncollectible 80%.
Data for Y1
Sales for the Y2 are $420, 00,000.
Total receivables for Y1 are $48,000,000.
In 0-30 days ageing category receivables are $30,000,000 with uncollectible 1%.
In 31-60 days ageing category receivables are $8,000,000 with uncollectible 7.5%.
In 61-90 days ageing category receivables are $4,000,000 with uncollectible 20%.
In 91-120 days ageing category receivables are $2,000,000 with uncollectible 40%.
In Over 120 days ageing category receivables are $4,000,000 with uncollectible 45%.