Reference no: EM131746897
Techno Designs Store uses the accounts receivable aging method to estimate uncollectible accounts. On February 1, 2014, the balance of the Accounts Receivable account was a debit of $442,341, and the balance of Allowance for Uncollectible Accounts was a credit of $43,700. During the year, the store had sales on account of $3,722,000, sales returns and allowances of $60,000, worthless accounts written off of $44,300, and collections from customers of $3,211,000. As part of the end-of-year (January 31, 2015) procedures, an aging analysis of accounts receivable is prepared. The analysis, which is partially complete, follows.
Customer
Account |
Total |
Not Yet
Due |
1-30
Days
Past Due |
31-60
Days
Past Due |
61-90
Days
Past Due |
Over 90
Days Past
Due |
| Balance |
| Forward |
$793,791 |
$438,933 |
$149,614 |
$106,400 |
$57,442 |
$41,402 |
To finish the analysis, the following accounts need to be classified:
| Account |
Amount |
Due Date |
| J. Curtis |
$11,077 |
Jan. 15 |
| T. Dawson |
9,314 |
Feb. 15 (next fiscal year) |
| L. Zapata |
8,664 |
Dec. 20 |
| R. Copa |
780 |
Oct. 1 |
| E. Land |
14,710 |
Jan. 4 |
| S. Qadri |
6,316 |
Nov. 15 |
| A. Rosenthal |
4,389 |
Mar. 1 (next fiscal year) |
| $55,250 |
From past experience, the company has found that the following rates are realistic for estimating uncollectible accounts:
Time |
Percentage Considered
Uncollectible |
| Not yet due |
2 |
| 1-30 days past due |
5 |
| 31-60 days past due |
15 |
| 61-90 days past due |
25 |
| Over 90 days past due |
50 |