Question

An aging analysis of Sheridan Company’s accounts receivable at December 31, 2020 and 2021, showed the...

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 $

Homework Answers

Answer #1
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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