Question - Keaubie Company has receivables totaling $433,000. They use an Aging of Receivables Report to estimate what will be uncollectible. In addition to receivables, they have the following current assets: Cash $1,000,000; Merchandise Inventory: $350,000; Prepaid Insurance: $3000; Supplies: $5000.
a. Complete the Aging of Receivables Report to determine uncollectible amount. Record the transaction.
b. Prepare a Current Assets section of a balance sheet and prepare the entryr to record the estimated uncollectible accounts
|
Aging of Receivables Report
|
|
Amount of Receivables
|
$185,000
|
$98,500
|
$67,000
|
$60,000
|
$22,000
|
|
|
|
|
|
|
|
|
Days Owed
|
0-30
|
31-60
|
61-90
|
91-120
|
Over 120
|
|
Percent Uncollectible
|
1.8%
|
6.5%
|
11%
|
29%
|
51%
|
|
Amount Uncollectible
|
|
|
|
|
|
|
Total Estimated Uncollectible
|
|
|
|
|
|