Consider the folowing analysis of Accounts Receivable, February 28, 20x0 (C10k t
ID: 2538224 • Letter: C
Question
Consider the folowing analysis of Accounts Receivable, February 28, 20x0 (C10k the ion to view the data ) 1. Prepare an aging schedule, classilying ages into four categories: 1 to 30 days, 31 to 60 days, 61 to 90 days, and over 90 days Assume that the prospective bad debt percentages for each category are 2%, 5%, 12%. and 60%, respectvely what isthe ending balance in the Alowance for Uncolectible Acous? Requirement 1 Prepare an agng schedule classying ages i to four categories 1 to 30 dy, 31 to 60 days 6190 days, and over 10 dan Assurn that the Popeche bed are 2%, 5%, 12%, and 80%, respectively what is te endng balance inte Alowanen for uncollectble Account? perron tr path ategay Begin by preparing the aging scheduethen determine the alowance for each category and the resuling ending baance for the total Allowance for Uncollectble Accounts. (Leave unused cells biank. Round to the nearest whole dollar) Aging of Accounts Receivable Name of Customer Total 1-30 Days 31-60 Days 61.90 Days Over 90 Days S 48,000 20,000 80,000 2,000 14,000 150,000 364,000 Jin Nurseries Sheghen's Landscaping ngiewood Garden Supply Grass Land Florists Total Prospective bad debt percentage Bad debt alowsnce to be provided Enter any tnumber in the edit fiolds and then continue to the next questionExplanation / Answer
Aging Schedule is as prepared below:
Ending balance of allowance for doubtful account will be $47,783
Name of Customers Total 1-30 days 31-60 days 61-90 days Over 90 days Jim Nurseries 48,000 38,400 9,600 Stephen's Landscaping 20,000 16,000 4,000 Inglewood Garden Supply 60,000 42,000 18,000 Burnadette Farm 72,000 72,000 Grass Land Florists 14,000 9,800 4,200 Other accounts (each detailed) 150,000 82,500 22,500 15,000 30,000 Total 364,000 180,300 68,500 75,600 39,600 Prospective bad debt percentages 2% 5% 12% 80% Bad debt allowance to be provided 47,783 3,606 3,425 9,072 31,680