Estimate required balance of Allowance for Doubtful Accounts

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Question - Jarden Company has credit sales of $2,400,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $15,160. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here.

December 31, 2017 Accounts Receivable

Age of Accounts Receivable

Expected Percent Uncollectible

$480, 000

Not yet due

0.90%

192,000

1 to 30 days past due

1.65

38,400

31 to 60 days past due

6.15

19,200

61 to 90 days past due

31.00

3, 840

Over 90 days past due

64.00

Required - Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accounts receivable method.

Reference no: EM132474335

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