In: Accounting
3. Using the information below, perform the following tasks:
Account Receivables |
Not Past Due |
0-31 days Past Due |
31-60 days Past Due |
61-90 days Past Due |
+ 90 days Past Due |
350,000 |
175,000 |
83,000 |
38,000 |
12,000 |
|
Percentage of not collecting |
2% |
8% |
22% |
58% |
78% |
Calculate the estimated amount of receivables that might not be collected
Perform the adjustment(debit/credit) using the allowance method.