
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%.

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Chapter 9 Solutions
Intermediate Accounting
- Nonearrow_forwardThe trial balance of Summit Industries included the following account balances on December 31, 2021: • • Accounts payable: $21,000 Bond payable, due 2031: $60,000 Wages payable: $18,000 . Note payable, due 2022: $30,000 • Note payable, due 2028: $45,000 What amount should be included in the current liability section of Summit's December 31, 2021, balance sheet? a) $69,000 b) $39,000 c) $48,000 d) $65,000arrow_forwardSales made by valente Corporation during 2015arrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
