Question

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Facial Cosmetics provides plastic surgery primarily to hide the appearance of unwanted scars and other blemishes. During 2021, the company provides services of $401,000 on account. Of this amount, $51,000 remains uncollected at the end of the year. An aging schedule as of December 31, 2021, is provided below.
  

Age Group

Amount
Receivable

Estimated Percent Uncollectible

Not yet due

$

31,000

3

%

0-30 days past due

10,100

4

%

31–60 days past due

7,100

11

%

More than 60 days past due

2,800

25

%

Total

$

51,000

Required:

1. Calculate the allowance for uncollectible accounts.

Age Group	Estimated Amount Uncollectible
Not yet due
0–30 days past due
31–60 days past due
More than 60 days past due
Total	$0

Answer 1

Age Group	Estimated amount uncollectible
Not yet due                                    [$31,000 x 3%]	$930
0-30 days past due                        [$10,100 x 4%]	$404
31–60 days past due                     [$7,100 x 11%]	$781
More than 60 days past due          [$2,800 x 25%]	$700
Total	$2,815

Allowance for uncollectible accounts.= $2,815