What SUP Ch 7-03 Solution Current
0 – 30 Days
Past Due
31 – 60 Days
Past Due
61 – 90 Days
Past Due
> 90 Days
Past Due
Allowance for Uncollectible Accounts 700,000 120,000 80,000 30,000 10,000
5.00% 8.00% 20.00% 25.00% 50.00%
Facts: Past experience ratio 0.80%
Accounts receivable balance (beg) 960,000
Accounts receivable balance (end) 940,000
Percentage of Sales Method
Allowance for Uncollectible accounts (beg) 75,000
Write-offs of accounts receivable (85,000)
Uncollectible accounts expense 81,480
Allowance for Uncollectible accounts (end) 71,480
Aging Method
Allowance for Uncollectible accounts (beg) 75,000
Write-offs of accounts receivable (85,000)
Uncollectible accounts expense 83,100
Allowance for Uncollectible accounts (end) 73,100
Sales on account 10,185,000
Collections on account (10,120,000)
Write-offs of accounts receivable (85,000)