Question

The aging of accounts receivable for Brett Company as of December 31 of the current year and estimated percentages of uncollectible accounts by age

group are presented in the table below. Calculate the estimate of uncollectible accounts expense. The balance of Allowance for Uncollectible Accounts
on December 31, before the adjusting entry is recorded, is a $236.89 credit
Age Group
Amount
Percent Uncollectible
Current
$16,485.18
20%
1-30
12,489.05
4.0%
31-60
6,958 18
80%
61-90
4,218 21
20.0%
Over 90
3,157 10
70.0%
$43,307 72
Current Balance of Allowance for Uncollectible Accounts
Estimated Addition to Allowance for Uncollectible Accounts

Answer 1

hey

Step-by-step explanation:

Answer 2

1. $329.70

2. $499.56

3. $556.65

4. $843.64

5. $2209.97

6. $4439.52

7. Current Allowance=$236.89

8. Estimated Addition=$4202.63

To calculate the estimate of uncollectible accounts for Brett Company:

1. Uncollectible for Current (2.0%):

`\[ \text{Current Uncollectible} = 16485.18 * (2.0)/(100) = \$329.70 \]`

2. Uncollectible for 1-30 days (4.0%):

`\[ \text{1-30 days Uncollectible} = 12489.05 * (4.0)/(100) = \$499.56 \]`

3. Uncollectible for 31-60 days (8.0%):

`\[ \text{31-60 days Uncollectible} = 6958.18 * (8.0)/(100) = \$556.65 \]`

4. Uncollectible for 61-90 days (20.0%):

`\[ \text{61-90 days Uncollectible} = 4218.21 * (20.0)/(100) = \$843.64 \]`

5. Uncollectible for over 90 days (70.0%):

`\[ \text{Over 90 days Uncollectible} = 3157.10 * (70.0)/(100) = \$2209.97 \]`

6. Total Estimated Uncollectible Accounts:

`\[ \text{Total Uncollectible} = 329.70 + 499.56 + 556.65 + 843.64 + 2209.97 = \$4439.52 \]`

7. Current Balance of Allowance for Uncollectible Accounts (Given):

Current Allowance=$236.89

8. Estimated Addition to Allowance for Uncollectible Accounts:

Estimated Addition=Total Uncollectible−Current Allowance
Estimated Addition=4439.52−236.89=$4202.63