Answer:
|
Accounts
age |
Balance
(A) |
Estimated Uncollectible %
(B) |
Allowance for uncollectible (C
= A*B) |
|
Current (not yet due) |
$
192,000 |
1 |
$
1,920 |
|
1-30 past due |
$
128,000 |
3.5 |
$
4,480 |
|
31-60 past due |
$
32,000 |
12 |
$
3,840 |
|
61-90 past due |
$
13,000 |
42 |
$
5,460 |
|
Over 90 days past due |
$
6,400 |
67 |
$
4,288 |
|
|
|
|
|
|
Total |
$
371,400 |
|
$
19,988 |
Gross balance = $371,400
Less: allowance for uncollectible = $19,988
Net realizable value of accounts receivable =
371400-19988 = $351,412
Option A $351,412 is the correct answer.
The other options are incorrect as they are adjusting the opening
balance in allowance for doubtful accounts and is not right.
