Wine Depot
Ch 7-09 Solution
Allowance for Uncollectible Accounts
Past experience ratio for % of sales method 2.10%
Aging Method Information Amount
Past experience
ratio
Current 734,539$ 3.00%
Facts:
Accounts receivable balance (beg) 758,271
Sales on account 1,601,542
Collections on account (1,523,541)
Write-offs of accounts receivable (23,487)
Accounts receivable balance (end) 812,785
Percentage of Sales Method
Allowance for uncollectible accounts (beg) 25,121
Write-offs of accounts receivable (23,487)
Uncollectible accounts expense 33,632
Allowance for Uncollectible accounts (end) 35,266
Aging Method
Allowance for uncollectible accounts (beg) 25,121
Write-offs of accounts receivable (23,487)
Uncollectible accounts expense 30,503
Allowance for uncollectible accounts (end) 32,137