Snick’s Board Shop
Ch 7-12 Solution
Allowance for Uncollectible Accounts
Aging Method Information Amount
Past experience
ratio
Current 2,400$ 2.00%
Total 3,700$
Facts:
Accounts receivable balance (beg) 5,000
Sales on account 45,000
Collections on account (45,500)
Write-offs of accounts receivable (800)
Accounts receivable balance (end) 3,700
Percentage of Sales Method
Allowance for uncollectible accounts (beg) 300
Write-offs of accounts receivable (800)
Uncollectible accounts expense 675
Allowance for Uncollectible accounts (end) 175
Aging Method
Allowance for uncollectible accounts (beg) 300
Write-offs of accounts receivable (800)
Uncollectible accounts expense 773
Allowance for uncollectible accounts (end) 273
Past experience ratio for % of sales method 1.50%