What are the advantage of basing uncollectibility of account

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Question

The totals from the Savoy Company's Schedule of Accounts Receivable by Age as of the end of the current year are shown below.

Accounts  Balance   Current    1-30   31-60    Over 60

Totals     $11,800     $9,200    $1,500  $600     $500

Also, compute the amount of the adjusting entry for uncollectible accounts expense.Current 1%

1-30 days past due 5%

31-60 days past due 15%

Over 60 days past due 40%

In addition, what are the advantages and disadvantages of basing uncollectibility of accounts on accounts receivables? Is the percentage given acceptable or not?

Reference no: EM132364261

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