Kirchhoff Industries has a past history of uncollectible accounts, as follows. Percent Age Class Uncollectible...
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Kirchhoff Industries has a past history of uncollectible accounts, as follows. Percent Age Class Uncollectible Not past due 2% 1-30 days past due 4 31-60 days past due 18 61-90 days past due 40 Over 90 days past due 75 Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below. Kirchhoff Industries Estimate the Allowance for Doubtful Accounts Not Past Balance Days Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due Over 90 Due Subtotals $600,000 $220,000 $115,000 $85,000 $30,000 30,000 Conover Industries 18,000 Keystone Company Moxie Creek Inc. $1,050,000 30,000 18,000 9,000 26,400 46,600 9,000 Rainbow Company 26,400 Swanson Company 46,600 Total receivables 1,180,000 626,400 266,600 124,000 60,000 103,000 40% Percentage uncollectible 2% 4% 18% 75% Allowance for doubtful accounts
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