Allowance for uncollectible accounts

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A company has the following balances on December 31, 2015, before any year-end adjustments: Accounts Receivable = $82,000; Allowance for Uncollectible Accounts = $1,100 (credit). The company estimates uncollectible accounts based on an aging of accounts receivable as shown below:

  Age Group

Amount
Receivable

Estimated Percent Uncollectible

  Not yet due

$ 48,000      

5 %

  0 - 30 days past due

18,000      

25 %

  31 - 90 days past due

12,000      

55 %

  More than 90 days past due

4,000      

80 %

 

 

 

       Total

$ 82,000      

 

 

 

 

 

 

Record the adjustment for uncollectible accounts on December 31, 2015. 

Reference no: EM13916968

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