Question

On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 860,000 Not yet due 1.25 % 344,000 1 to 30 days past due 2.00 68,800 31 to 60 days past due 6.50 34,400 61 to 90 days past due 32.75 13,760 Over 90 days past due 68.00

Answer 1

The correct answer is $42,724.8.

Step-by-step explanation:

According to the scenario, the computation of the given data are as follows:

Uncollectable Amt. = Receivable Amt × Uncollectable Percentage

Time Receivable amt. Uncollectable % Uncollectable Amt.

Not yet due $860,000 1.25% $10,750

1 - 30 days $344,000 2.00% $6,880

31 - 60 days $68,800 6.50% $4,472

61 - 90 days $34,400 32.75% $11,266

Over 90 days $13,760 68.00% $9,356.8

Total $42,724.8

So, Required balance of the allowance for doubtful accounts at Dec.31 is $42,724.8