Preparing an Aging Schedule to Estimate Allowance for Doubtful Accounts A review of open invoices of Sketchers Inc. results in the following report. Date (Each from this Invoice Amount year) #496 $305.65 5-Dec #495 457.18 2-Dec #427 182.77 5-Nov #100 72.71 28-Jun #300 494.29 3-Oct #410 446.84 31-Oct #204 41.80 25-Aug #498 507.23 28-Dec #499 184.10 28-Dec #487 498.19 28-Nov #310 138.43 8-Oct # 178 428.81 7-Aug #497 223.36 5-Dec #488 #105 95.27 29-Nov 12.49 $4,089.12 5-Jul Required a. Organize the list of open invoices as of December 31 into a table with the following aging categories across the top: (1) less than 31 days, (2) 31-60 days, (3) 61-90 days, and (4) greater than 90 days. b. Assume that the company estimates the allowance for doubtful accounts based on the following percentages applied to the appropriate aging categories: (1) 1% for less than 31 days, (2) 5% for 31-60 days, (3) 30% for 61-90 days, and (4) 60% for greater than 90 days. What is the ending balance of the allowance for doubtful accounts as estimated by the company? Complete the following table to complete requirements of parts a and b. Note: For each of the dollar amounts that you enter into the table below, round to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425. Less than Greater than 31 days 31-60 Days 61-90 Days 90 Days Total Total Receivables $ 0 $ 0 $ 0 $ 0 $ 0 Percentage 0% 0% 0% 0% Estimated Uncollectibles $ 0 $ 0 $ 0 $ 0 $ 0
Preparing an Aging Schedule to Estimate Allowance for Doubtful Accounts A review of open invoices of Sketchers Inc. results in the following report. Date (Each from this Invoice Amount year) #496 $305.65 5-Dec #495 457.18 2-Dec #427 182.77 5-Nov #100 72.71 28-Jun #300 494.29 3-Oct #410 446.84 31-Oct #204 41.80 25-Aug #498 507.23 28-Dec #499 184.10 28-Dec #487 498.19 28-Nov #310 138.43 8-Oct # 178 428.81 7-Aug #497 223.36 5-Dec #488 #105 95.27 29-Nov 12.49 $4,089.12 5-Jul Required a. Organize the list of open invoices as of December 31 into a table with the following aging categories across the top: (1) less than 31 days, (2) 31-60 days, (3) 61-90 days, and (4) greater than 90 days. b. Assume that the company estimates the allowance for doubtful accounts based on the following percentages applied to the appropriate aging categories: (1) 1% for less than 31 days, (2) 5% for 31-60 days, (3) 30% for 61-90 days, and (4) 60% for greater than 90 days. What is the ending balance of the allowance for doubtful accounts as estimated by the company? Complete the following table to complete requirements of parts a and b. Note: For each of the dollar amounts that you enter into the table below, round to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425. Less than Greater than 31 days 31-60 Days 61-90 Days 90 Days Total Total Receivables $ 0 $ 0 $ 0 $ 0 $ 0 Percentage 0% 0% 0% 0% Estimated Uncollectibles $ 0 $ 0 $ 0 $ 0 $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Preparing an Aging Schedule to Estimate Allowance for Doubtful Accounts
A review of open invoices of Sketchers Inc. results in the following report.
Date
(Each
from
this
Invoice Amount year)
#496
$305.65 5-Dec
#495
457.18 2-Dec
#427
182.77 5-Nov
#100
72.71 28-Jun
#300
494.29 3-Oct
#410
446.84 31-Oct
#204
41.80 25-Aug
#498
507.23 28-Dec
#499
184.10 28-Dec
#487
498.19 28-Nov
#310
138.43 8-Oct
# 178
428.81 7-Aug
#497
223.36 5-Dec
#488
#105
95.27 29-Nov
12.49
$4,089.12
5-Jul
Required
a. Organize the list of open invoices as of December 31 into a table with the following aging categories across the top: (1) less than 31 days, (2) 31-60 days, (3) 61-90 days, and (4) greater than 90 days.
b. Assume that the company estimates the allowance for doubtful accounts based on the following percentages applied to the appropriate aging categories: (1) 1% for less than 31 days, (2) 5% for 31-60 days, (3) 30% for 61-90 days, and (4) 60% for greater than 90 days. What is the ending balance of the allowance for doubtful accounts as estimated by the
company?
Complete the following table to complete requirements of parts a and b.
Note: For each of the dollar amounts that you enter into the table below, round to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425.
Less than
Greater than
31 days 31-60 Days
61-90 Days
90 Days
Total
Total Receivables
$
0 $
0 $
0 $
0 $
0
Percentage
0%
0%
0%
0%
Estimated Uncollectibles $
0 $
0 $
0 $
0 $
0
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