Q1) Draber Company uses allowance method based on aging method to find out the estimated allowance for doubtful accounts. Below is given an aging at the end of current period with percent uncollectible experience rates:
| |
|
Number of Days Outstanding |
| |
Total |
0-30 days |
31-60 days |
61-90 days |
91-120 days |
Over 120 days |
| Accounts Receivable |
$450,000 |
$220,000 |
$100,000 |
$45,000 |
$30,000 |
$55,000 |
| %uncollectible rate |
|
2% |
4% |
6% |
8% |
10% |
Given above information, compute estimated allowance for doubtful accounts at the end of the period.