Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 2nd - ch 8 exercises estimating doubtful accounts

2nd - Ch 8 Exercises Estimating Doubtful Accounts Outlaw Bike Co. is a wholesaler of...

80.2K

Verified Solution

Question

Accounting

image

2nd - Ch 8 Exercises Estimating Doubtful Accounts Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Age Class Balance Percent Uncollectible 1/2 % 3 Not past due 1-30 days past due 31-60 days past due 61-90 days past due 91-180 days past due Over 180 days past due $576,000 63,400 28,800 20,700 15,000 8 18 39 10,900 80 $714,800 Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31. Percent Estimated Uncollectible Age Class Balance Uncollectible Accounts Amount Not past due $576,000 1/2% $ X 1-30 days past due 63,400 3 X 28,800 8 20,700 18 31-60 days past due 61-90 days past due 91-180 days past due Over 180 days past due 15,000 39 10,900 80 Total $714,800 $

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Discuss effects of structure and of the medium on the strengths of acids and bases. Use...

Chemistry
Q

How factor safety is important in design of hydraulic cylinder?

Mechanical Engineering
Q

Two similar thin bars AB and OC of mass 1 2 kg and length 9...

Physics
Q

There is some evidence that, in the years 1981-85, a simple name change resulted in...

Basic Math
Q

Module 2 Challenge Exal 320 points possible 5 32 answered Question 21 Evaluate the expression...

Basic Math
Q

fimd a polymnomiall of degree n that has only the givnen zeros x 2 1...

Algebra
Q

Write the radical as a pure imaginary number 75 75 Simplify your answer Type an...

Algebra
Q

Kelly Inc. leased equipment, originally reported in inventory, to General Engines Inc. for a 4-year...

Accounting
Q

Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return Follow the format...

Accounting
Q

Ravelo Corporation has provided the following data from its activity-based costing system: ...

Accounting
Q

The stockholders' equity section of Pina Colada Corp.'s balance sheet at December 31 is presented...

Accounting
Q

Binomial Solutions Inc (BSI) is a financial software company. Its asset has a current market...

Finance