Answer:
Estimated Allowance for Uncollectible Accounts $ 17950.
Explanation:
Pearl E. White Orthodontist
Schedule of Accounts Receivable by Age
December 31, 2021
Age Group Amount Estimated Uncollectible
Receivable Percent
Not yet due $ 40,000 4% 1600
0-90 days past due 16,000 20% 3200
91-180 days past due 11,000 25% 2750
More than 180 days past due 13,000 80% 10400
Total $ 80,000 17950
Estimated Allowance for Uncollectible Accounts $ 17950.
The above schedule shows the accounts receivable assigned to one of the four classes based on its days past due . The amounts of each class are multiplied by the estimated percent of the uncollectibles accounts. The total amount in the Uncollectible is the estimated balance for the Allowance for Uncollectible Accounts $ 17950.
Answer:
Allowance for uncollectible accounts = 17950
Explanation:
The allowance for doubtful accounts is a contra-asset account associated with accounts receivable. This account is creasted to reflect the true value of accounts receivable. The amount represents the value of accounts receivable that a company does not expect to receive.
Not yet due: $ 40,000 × 0.04 = 1600
0-90 days past due: 16,000 × 0.2 = 3200
91-180 days past due: 11,000 × 0.25 = 2750
More than 180 days past due: 13,000 × 0.8 = 10400
Allowance for uncollectible accounts = 17950
