An aging analysis of Sheridan Company’s accounts receivable at
December 31, 2020 and 2021, showed the following:
Accounts Receivable | ||||||||
Number of Days Outstanding |
Estimated
% Uncollectible |
2021 | 2020 | |||||
---|---|---|---|---|---|---|---|---|
0–30 days | 3% | $106,000 | $130,000 | |||||
31–60 days | 6% | 26,500 | 65,000 | |||||
61–90 days | 13% | 53,000 | 39,000 | |||||
Over 90 days | 35% | 79,500 | 26,000 | |||||
Total | $265,000 | $260,000 |
Additional information:
1. | At December 31, 2020, the unadjusted balance in Allowance for Doubtful Accounts was a credit of $5,900. | |
2. | In 2021, $27,300 of accounts was written off as uncollectible and $3,200 of accounts previously written off was collected. |
Prepare an aging schedule to calculate the estimated
uncollectible accounts at December 31, 2020, and at December 31,
2021.
2020 | ||||||||||
Number of Days Outstanding |
Amount | % | Estimated Uncollectible |
|||||||
0–30 days | $130,000 | 3% | $ | |||||||
31–60 days | 65,000 | 6% | ||||||||
61–90 days | 39,000 | 13% | ||||||||
Over 90 days | 26,000 | 35% | ||||||||
Total | $260,000 | $ |
2021 | ||||||||||
Number of Days Outstanding |
Amount | % | Estimated Uncollectible |
|||||||
0–30 days | $106,000 | 3% | $ | |||||||
31–60 days | 26,500 | 6% | ||||||||
61–90 days | 53,000 | 13% | ||||||||
Over 90 days | 79,500 | 35% | ||||||||
Total | $265,000 | $ |
2020 | |||
No. of days | Estimated | ||
outstanding | Amount | % | Uncollectible |
0-31 days | $ 1,30,000.00 | 3% | $ 3,900.00 |
31-60 days | $ 65,000.00 | 6% | $ 3,900.00 |
61-90 days | $ 39,000.00 | 13% | $ 5,070.00 |
Over 90 days | $ 26,000.00 | 35% | $ 9,100.00 |
Total | $ 2,60,000.00 | $ 21,970.00 |
2021 | |||
No. of days | Estimated | ||
outstanding | Amount | % | Uncollectible |
0-31 days | $ 1,06,000.00 | 3% | $ 3,180.00 |
31-60 days | $ 26,500.00 | 6% | $ 1,590.00 |
61-90 days | $ 53,000.00 | 13% | $ 6,890.00 |
Over 90 days | $ 79,500.00 | 35% | $ 27,825.00 |
Total | $ 2,65,000.00 | $ 39,485.00 |
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