On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 860,000 Not yet due 1.25 % 344,000 1 to 30 days past due 2.00 68,800 31 to 60 days past due 6.50 34,400 61 to 90 days past due 32.75 13,760 Over 90 days past due 68.00

Question

Business

Kimberly Lucero

19 July, 05:15

On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 860,000 Not yet due 1.25 % 344,000 1 to 30 days past due 2.00 68,800 31 to 60 days past due 6.50 34,400 61 to 90 days past due 32.75 13,760 Over 90 days past due 68.00

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Answers (1)

Know the Answer?

Mariyah Brady · Answer 1

The correct answer is $42,724.8.

Explanation:

According to the scenario, the computation of the given data are as follows:

Uncollectable Amt. = Receivable Amt * Uncollectable Percentage

Time Receivable amt. Uncollectable % Uncollectable Amt.

Not yet due $860,000 1.25% $10,750

1 - 30 days $344,000 2.00% $6,880

31 - 60 days $68,800 6.50% $4,472

61 - 90 days $34,400 32.75% $11,266

Over 90 days $13,760 68.00% $9,356.8

Total $42,724.8

So, Required balance of the allowance for doubtful accounts at Dec. 31 is $42,724.8