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Aging Method Information
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Current |
0 - 30 Days Past Due |
31 - 60 Days Past Due |
61 - 90 Days Past Due |
> 90 Days Past Due |
Total |
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Amount
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Past experience ratio
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Past experience ratio for % of sales method
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Facts:
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Accounts receivable balance (beg) |
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Sales on account |
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Collections on account |
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Write-offs of accounts receivable |
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Accounts receivable balance (end) |
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Percentage of Sales Method
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Allowance for uncollectible accounts (beg) |
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Write-offs of accounts receivable |
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Uncollectible accounts expense |
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Allowance for Uncollectible accounts (end) |
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Aging Method
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Allowance for uncollectible accounts (beg) |
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Write-offs of accounts receivable |
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Uncollectible accounts expense |
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Rosey's Roses had sales on account of $345,000,
collections of $337,000 write-offs of $3,700, a beginning balance
in accounts receivable of $37,000, and a beginning balance in the
allowance for uncollectible accounts of $1,200. At year end,
$34,000 of accounts receivable were current, $4,900 were 0-30 days
past due, and $400 were over 90 days past due. The company believes
1.0 percent of sales will not be collected. They also have
experience suggesting that 3% of all current receivables, 5% of
receivables 0-30 days past due, 15 percent of receivables 31-60
days past due, 20 percent of receivables 61-90 days past
due, and 40% of receivables over 90 days past due will not be
collected. Use the third worksheet of the workbook to
answer this problem: a. Complete an allowance for uncollectible
accounts analysis using the percentage of sales method. b. Complete
an allowance for uncollectible accounts analysis using the aging
method. Need to show formulas in excel
