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Question
Corona Company has credit sales of $4.60 million for year 2014. The company estimates that 2% of sales will be uncollectible. On December 31, 2014, the companys Allowance for Doubtful Accounts has an unadjusted credit balance of $13,164. Corona prepares a schedule of its December 31, 2014, accounts receivable by age. Based on past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here:
| December 31, 2014 Accounts Receivable | Age of Accounts Receivable |
Expected Percent Uncollectible | |
| $720,000 | Not yet due | 05 | % |
| 252,000 | 1 to 30 days past due | 1.80 | |
| 49,600 | 31 to 60 days past due | 6.30 | |
| 14,100 | 61 to 90 days past due | 31.75 | |
| 2,850 | Over 90 days past due | 66.00 | |
Assuming the company used the percent of sales method determine the amount that should be recorded for bad debt expense on December 31, 2014.
Answer
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Related questions
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Periods
12 Percent 1
8929 2
1.6901 3
2.4018 4
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