Question

Evers Industries has a past history of uncollectible accounts, as follows.

Age Class	Percent Uncollectible
Not past due	2%
1–30 days past due	5
31–60 days past due	14
61–90 days past due	33
You are in Column Age ClassOver 90 days past due	You are in Column Percent Uncollectible78

Estimate the allowance for doubtful accounts, based on the aging of receivables

The process of analyzing the accounts receivable and classifying them according to various age groupings, with the due date being the base point for determining age.

information provided in the Aging of Receivables Schedule page.

Evers Industries

Estimate of Allowance for Doubtful Accounts

1				Days Past Due	Days Past Due	Days Past Due	Days Past Due
2		Balance	Not Past Due	1-30	31-60	61-90	Over 90
3	Total receivables	1,149,500.00	611,000.00	236,000.00	122,100.00	106,000.00	74,400.00
4	Percentage uncollectible		2.0%	5.0%	14.0%	33.0%	78.0%
5	Allowance for doubtful accounts	????	12220	11800	17094	34980	58032

Answer 1