Question

Use this information for the following three questions. On December 31, 2017, Vale Company had an unadjusted balance of $11,200 in its allowance for uncollectible accounts. You perform an aging analysis of its accounts receivable: Age Amount Estimated % Uncollectible 0-30 days $95,000 5% 31-60 days $25,000 15% Over 60 days $8,500 40%

Calculate gross accounts receivable, to the nearest dollar.

Calculate the new allowance for uncollectible accounts, to the nearest dollar.

Calculate net accounts receivable, to the nearest dollar.

Answer 1

Days	Amount	Est.% Uncollectible	Estimated uncollectible
0-30	95,000	5%	4,750
30-60	25,000	15%	3,750
Over 60	8,500	40%	3,400
Total	128,500		11,900

a.

Gross accounts receivable = $128,500

b.

New allowance for uncollectible accounts = $11,900

c.

Net accounts receivable = Gross accounts receivable - New allowance for uncollectible accounts

= 128,500-11,900

= $116,600

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