Spade Agency separates its accounts receivable into three age groups for purposes of estimating the percentage of uncollectible accounts. In addition, the balance of Allowance for Uncollectible Accounts before adjustment is $12,000 (credit). 1. Accounts not yet due = $47,000; estimated uncollectible = 4%. 2. Accounts 1-60 days past due $32,000; estimated uncollectible = 25%. 3. Accounts more than 60 days past due = $27,000; estimated uncollectible = 50%. Required: 1. Compute the total estimated uncollectible accounts. Estimated Amount Uncollectible Age Group Not yet due 1-60 days past due More than 60 days past due Total

Spade Agency separates its accounts receivable into three age groups for purposes of estimating the percentage of uncollectible accounts. In addition, the balance of Allowance for Uncollectible Accounts before adjustment is $12,000 (credit). 1. Accounts not yet due = $47,000; estimated uncollectible = 4%. 2. Accounts 1-60 days past due $32,000; estimated uncollectible = 25%. 3. Accounts more than 60 days past due = $27,000; estimated uncollectible = 50%. Required: 1. Compute the total estimated uncollectible accounts. Estimated Amount Uncollectible Age Group Not yet due 1-60 days past due More than 60 days past due Total

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 25E

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