Question

At January 1, 2021, Tanner Company reported accounts receivable of $262,750
and had an allowance for doubtful accounts with a $13,690 credit balance.
During 2021, Tanner Company had sales revenue of $531,250, recoveries of
$6,190, cash collections from credit customers of $493,580 (the $493,580
does not include the recovery), and bad debt expense of $20,870. During
2021, Tanner Company wrote-off accounts receivable as being uncollectible
(note - the amount of the write-offs has been intentionally omitted from
this problem). At December 31, 2021, Tanner Company prepared the following
aging schedule:

                       Accounts Receivable      % Uncollectible
    not past due $146,100 3%
    1-45 days past due        56,400 9%
    46-90 days past due       38,600 11%
    91-135 days past due      21,850 ?
    over 135 days past due    23,930 40%

Calculate the percentage estimated to be uncollectible for the accounts
receivable that are 91-135 days past due.

Answer 1

Estimate allowance for doubtful accounts = 20870+13690+6190 = 40750

Calculate the percentage estimated to be uncollectible for the accounts
receivable that are 91-135 days past due.

	Amount	% uncollectible	Amount uncollectible
Not past due	146100	3%	4383
1-45 days past due	56400	9%	5076
46-90 days past due	38600	11%	4246
91-135 days past due	21850	80%	17480
Over 135 dayas past due	23930	40%	9572
Total			40750

Percentage = (40750-23277)*100/21850 = 80%