Chapter 9, Problem 9.14BE

To determine

The accounting treatment of making provision for bad debts under Aging of accounts receivable method.

Given information:

Opening balance of provision for doubtful accounts is $23,108.

Currents Debtors is for $ 237,000, Allowance to be provided is 2%.

Debtors of 1-30 days past due is for $ 127,400, Allowance to be provided is 7%.

Debtors of 31-60 days past due is for $ 110,000, Allowance to be provided is 20%.

Debtors of 61-90 days past due is for $ 56,000 Allowance to be provided is 40%.

Debtors of Over 90 days past due is for $ 19,600, Allowance to be provided is 100%.