Determine the total estimated uncollectables. Marc Pty Ltd has accounts receivable of $99,300...
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Accounting
Determine the total estimated uncollectables.
Marc Pty Ltd has accounts receivable of $99,300 at 31 March 2016. An analysis of the accounts shows the following amounts Balance, 31 March Month of sale 2016 2015 March February December and January November and October $69,000 $69,900 13,900 9,400 7,000 8,600 2,100 1,000 $99,300 $81,600 Credit terms are 2/7, n/30. At 31 March 2016 there is a $1,580 credit balance in allowance for doubtful debts before adjustment. The entity uses the ageing of accounts receivable basis for estimating uncollectable accounts. Marc Pty Ltd's estimates of bad debts are as follows. Age of accounts Current 1-30 days past due 31-90 days past due Over 90 days Estimated percentage uncollectable 2.0% 5.0 30.0 50.0
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