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18 December, 18:59

On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 860,000 Not yet due 1.25 % 344,000 1 to 30 days past due 2.00 68,800 31 to 60 days past due 6.50 34,400 61 to 90 days past due 32.75 13,760 Over 90 days past due 68.00

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  1. 18 December, 20:49
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    The correct answer is $42,724.8.

    Explanation:

    According to the scenario, the computation of the given data are as follows:

    Uncollectable Amt. = Receivable Amt * Uncollectable Percentage

    Time Receivable amt. Uncollectable % Uncollectable Amt.

    Not yet due $860,000 1.25% $10,750

    1 - 30 days $344,000 2.00% $6,880

    31 - 60 days $68,800 6.50% $4,472

    61 - 90 days $34,400 32.75% $11,266

    Over 90 days $13,760 68.00% $9,356.8

    Total $42,724.8

    So, Required balance of the allowance for doubtful accounts at Dec. 31 is $42,724.8
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