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
$830,000
Not yet due
1.25%
254,000
1 to 30 days past due
2.00
86,000
31 to 60 days past due
6.50
38,000
61 to 90 days past due
32.75
12,000
Over 90 days past due
68.00
Required:
1. Compute the required balance of the Allowance for Doubtful Accounts at December 31.
Accounts
receivable
Percent uncollectible
(#.##%)
Estimated
uncollectible
Not due:
X
=
1 to 30:
X
=
31 to 60:
X
=
61 to 90:
X
=
Over 90:
X
=
Estimated balance of allowance for uncollectibles
$
0
