question archive Daley Company estimates uncollectible accounts using the allowance method at December 31
Daley Company estimates uncollectible accounts using the allowance method at December 31
Subject:BusinessPrice: Bought3
Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. Days Past Due Total 0 1-30 31-60 61-90 Over90 $570,000 $396,000 $90,000 $36,000 $18,000 $30,000 Accounts receivable Percent uncollectible 1% 2% 5% 7% 10% 1. Calculate the estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method. 2. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method.
