Calculation of estimated allowance for doubtful accounts

Assignment Help Financial Accounting

Reference no: EM1312489

Calculation of Estimated Allowance for doubtful accounts with a change in Sales.

The Draber Company uses the allowance method based on the aging method to determine the estimated allowance for doubtful accounts. Below is presented an aging at the end of the current period with the percent uncollectible experience rates:

		Number of Days Outstanding
	Total	0-30 days	31-60 days	61-90 days	91-120 days	Over 120 days
Accounts Receivable	$450,000	$220,000	$100,000	$45,000	$30,000	$55,000
%uncollectible rate		2%	4%	6%	8%	10%

Assume that the Draber Company uses 4% of total sales to estimate the allowance for doubtful accounts as opposed to the aging of the accounts receivable. What would you answers be for parts 1 and 2 if sales for the current period were $220,000?

Reference no: EM1312489

Questions Cloud

T-test for one sample mean : To test this notion, eight paid volunteers were placed (individually) in a room in which there was no light from the outside and no clocks or other indications of time.

Evaluate the accumulated depreciation for each machine : Evaluate the accumulated depreciation for each machine at December 31, 2008 - The Capital Company purchased 3 machines in the past year. Information regarding these items

Bond issue and interest accrued on bonds due adjustment : Show the journal entries in 2006. (Please be reminded the year-end for ABC Corporate is Dec 31, adjusting is required)

Understanding basics of epidemiology : What is basics of epidemiology, brief description on Understanding basics of epidemiology

Calculation of estimated allowance for doubtful accounts : Calculation of Estimated Allowance for doubtful accounts with a change in Sales - What would you answers be for parts 1 and 2 if sales for the current period were $220,000

Basics of biology : Which of following statements is NOT true about the chemical bonds? Both kinds of the chemical bonds involve electrons in the outer shell. Covalent bonds share the electrons between two atoms.

Independent samples t-test : Explain your answer to someone who is familiar with the t test for a single sample, but not with the t test for independent means.

Finding the percentage of american debt : If operating lease commitments are considered equivalent to debt, what percentage of the American's debt is represented by the lease liabilities?

Accounts receivable and allowance for doubtful accounts : If $2,000 is determined to be specifically uncollectible, what effect will the write-off of the specific receivable have on: accounts receivable and allowance for doubtful accounts?

User Account

All Pages