Determine the estimated allowance for doubtful accounts

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Reference no: EM1312480

Calculation of Estimated Allowance for doubtful accounts.

The Draber Company uses the allowance method based on the aging method to determine the estimated allowance for doubtful accounts. Below is presented an aging at the end of the current period with the percent uncollectible experience rates:

		Number of Days Outstanding
	Total	0-30 days	31-60 days	61-90 days	91-120 days	Over 120 days
Accounts Receivable	$450,000	$220,000	$100,000	$45,000	$30,000	$55,000
%uncollectible rate		2%	4%	6%	8%	10%

Given the above information, calculate the estimated allowance for doubtful accounts at the end of the period.

Reference no: EM1312480

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